When thinking about bankruptcy, many emotions come to mind such as fear and helplessness. But perhaps the most common one attached to bankruptcy is shame. We understand it can be psychologically worrying not being able to pay off debts and being left with no assets or property.
However bankruptcy is not always your fault. Catastrophic or unexpected situations arise such as a sudden job loss or even a major illness. It is beyond your control when you try but fail to pay the mounting debts which result from these unexpected situations such as bills, credit card debts, bank repayments etc.
The number of people that struggle with debts who are opting for an alternative to bankruptcy has increased to a three-year high. It becomes evident that the rising cost of living is putting a huge strain on many families.
Before you reach such a stage, taking out an IVA can help. The benefits are incredible:
- Potentially write off up to 70% of your debt.
- Freeze interest and other charges.
- Lower your monthly payments.
- Stop creditors from chasing you for payment
So before filing for bankruptcy, it is wise to consider applying for an IVA.