Even though we tend to ignore this problem, personal insolvency is more and more common these days. If it occurs, solutions are needed in order to solve it. It is an undesirable situation that can have unpleasant consequences on your personal and professional life. When thinking about insolvency, most people think about bankruptcy. This implies the fact that you open a court case and declare your inability of paying your debts. However, this should be only done when other alternatives have failed and there’s nothing else left to do.
An alternative to bankruptcy is IVA (Individual Voluntary Agreement). This is a way of dealing with your debts and insolvency that can be customized depending on the particularities of your financial situation. If your creditors agree, an IVA will allow you to pay smaller amounts of money for a period and to clear your debt completely at the end of that period.
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