what is the difference btw an IVA and Bankruptcy

[F.A7]

We have been on an IVA for about 2 years now. Iwas just wondering what is the difference btw an IVA and Bankruptcy. Please can someone enlighteen me on this.Thanks

[chris.g]

Hiya and welcome.
Roughly an IVA is a voluntary agreement for the debtor, you, to pay the creditors either partial or the whole of the debt owed. Usually any assets, ie house, will be safe in an IVA.
Br is mostly when a debtor can't make any payments due to a lack of disposable income and any assets that can raise money will be claimed and sold in an attempt to raise cash for the creditors.
IVA's usually last 5yr, br's are discharged usually after 12 months, and any payments that are being made into the br are made for 3yr.
Hope this sheds some light on it for you

[scaredkez]

br also usually happens when an iva is rejected or an iva cannot be serviced, it is over quicker than an iva, you do have assets to lose if you are trying to protect them in an iva, BR is not always taken through choice but as a last resort, but to some may seem the easy option which it is if you have no assets and want a quick fix solution, don't get me wrong it has many negatives too, but with the credit crunch how many of us will be taking this option?.
kerri

[TheMatrix]

If you have been in a IVA for 2 years, there would be little point in going BR now.

There is a posting on the following link which will explain the reasons for this.

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=11003