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Case Upon - IVA vs Bankruptcy - The Facts You Need to Know
For many medium and large sized businesses, venture capital financing is one of the best options for funding their business. While small businesses and startup companies rely more on equity funding and loans, venture capital funding is also a good funding option for them.Venture Capitalists: Venture capitalists are groups of investors who loan money to companies they think have the potential to grow big. They essentially invest their money in companies in hope of seeing their investment bring returns when the company does well and earns large profits. Loans extended by venture capitalists are a major source of funds for many medium to large, as well as some small, businesses.Venture capitalists take calculated risks in hope of gaining more than what they invested initially.Disadvantage of Venture Capital Funding: By borrowing from venture capitalists, you allow your company to be influenced by them to some degree. As long as the company is being run well and brings in profits, venture capitalists will not interfere with the management and decision-making procedures of the company; but if they think the business is not doing as well as they predicted, they may step in to save their investment. This is a major
How long will my Bankruptcy last?
Your Bankruptcy will last for 12 months, after which time you will receive an automatic discharge. However, in cases where it is judged the debts were incurred through irresponsible or excessive spending you could be held bankrupt for a maximum of 15 years.
The IVA option.
What is an IVA?
An IVA is an alternative to bankruptcy. An IVA, or Individual Voluntary Arrangement, is a private, legally binding agreement between you and your creditors. An IVA enables you to offer your creditors a structured repayment program over an agreed time period, which is normally 5 years. The IVA repayments are based on your disposable income (i.e. how much you can actually afford to pay back each month once your essential living expenses have been deducted). The IVA is proposed to your creditors through an insolvency practitioner, who acts on your behalf by seeking a vote of acceptance for the IVA from your creditors. It is necessary to achieve acceptance from 75% of your creditors before the IVA can be considered binding on all of them. Once accepted, an IVA protects you from your creditors takin
Not all credit cards are born equal. Different cards have different offers, features, and charges, and choosing a card is not as simple as going for the one with the lowest advertised rate. Various types of card are suitable for different types of use, and choosing the right card for you depends on how you plan to use it as well as how low the rate is, or how attractive the introductory offer.If you intend to use the card mainly as a convenient way of spending and usually clear your balance every month, then the headline interest rate doesn't really matter to you, as you shouldn't be paying any interest at all. Instead, make sure the card you're planning to apply for has a long 'grace period' on interest charges, giving you chance to pay your statement before any interest is applied. Interest free periods should be at least 30 days and are more usually in the 50-60 day range.This kind of card user can also benefit from a cashback or rewards scheme if the card is regularly used for purchases, and so long as you avoid carrying a balance over you can actually turn a profit from your credit card account.If, however, you use the card as a kind of short term borrowing, regularly paying off larger purchases over a fe
This is one of the most important questions facing people with serious debt problem, and to be honest, it can be an extremely difficult question to answer.
In my position as a debt adviser, specialising in IVAs, I believe helping a person understand how their personal circumstances will affect the suitability of each solution, either an IVA or Bankruptcy, remains crucial to helping someone decide on how best they can move forward.
So, here are the facts, in plain English, which you need to know before you can decide which option, be it an IVA or Bankruptcy, is most suitable for your circumstances.
The Personal Bankruptcy Option.
What is bankruptcy?
Well, being bankrupt is: "when a person is declared in law to be unable to pay outstanding debts".
(It is also known as being insolvent.)
What you can expect to happen
After the court has issued a bankruptcy order against you, you will be interviewed by the Official Receiver. If you have any assets, you may also be interviewed by a Trustee in Bankruptcy and your assets will then be sold by the Trustee in Bankruptcy. The money from the sale of your assets will be used to settle your outstanding debts, however, all the costs and fees of the bankruptcy process will be paid out of these funds before the creditors receive any settlement, or dividend payments. If you can afford to make monthly payments to the Official Receiver from your income, you will be expected to make these payments for three years. If the Official Receiver thinks you can afford to make payments, and you refuse to agree, he can obtain a court order to make you do so. The Official Receiver can also make your employer deduct the payments from your salary. The Official Receiver has considerable power, and your failure to cooperate could result in a warrant for your arrest, or public examination in front of a judge. The Official Receiver has the power to reverse any sale of assets where they are deemed to have been sold for less that their true value, and if it is believed the transaction defrauded creditors, there is no time limit as to how far back in time the Official Receiver can go.
What assets will be sold in Bankruptcy?
Any equitable interest with a saleable value which you own, i.e. properties, cars, caravans, properties abroad, time share, luxury goods, stocks, shares, investments and other valuable assets. If you own a part share of an asset, for instance a house, the ownership of your share passes to the Official Receiver. If you cannot arrange for a third party to buy your share of the equity, the Official Receiver can force the repossession and sale of it. If this asset is your home, you will be forced to move out.
Will Bankruptcy clear all my debts?
No. Bankruptcy will not clear any secured debts you may have. Also student loan company debts, fines, council tax arrears and family court orders for maintenance will not be included in a Bankruptcy.
What savings can you keep in Bankruptcy?
Pensions are generally protected in a bankruptcy, but savings, shares, investments and equity in property will lost to the Trustee.
What assets can you keep in Bankruptcy?
The trustee will generally allow you to keep a modest motor vehicle and any tools required for you to earn an income.
What other assets can you keep in Bankruptcy?
The trustee will generally allow you to keep your ordinary household contents, i.e. Tv, stereo, computer, sofa, washing machine, etc.
What about working whilst in Bankruptcy?
You retain the right to earn an income, but the effect Bankruptcy has on your position within a business depends on your occupation. If you hold a professional license, your regulatory body will need to be informed which may result in a suspension of your license. If you are a director of a business you will be required to resign your directorship and if you hold shares in the business they will be sold. If you are in a partnership, your fellow partners will be required to buy out your interest in the business. If you are a sole trader, you can continue to trade, but you will not be able to have any credit agreements with suppliers above ?500. If you are employed, you bankruptcy ought to have no effect on your right to work, however, if your occupation involves handling money and dealing with finances, your future employment will be at the discretion of your employer.
What about your privacy in Bankruptcy?
Because a Bankruptcy is a court process, details of which are in the public domain, your bankruptcy will be published in the press which may appear in a local newspaper.
What else could happen whilst in Bankruptcy?
If you receive an increase in income or inherit money from a deceased relative's estate, or enjoy a windfall like a lottery win, you will be obliged to inform the Official Receiver and make the money available to your Bankruptcy estate.
How long will my Bankruptcy last?
Your Bankruptcy will last for 12 months, after which time you will receive an automatic discharge. However, in cases where it is judged the debts were incurred through irresponsible or excessive spending you could be held bankrupt for a maximum of 15 years.
The IVA option.
What is an IVA?
An IVA is an alternative to bankruptcy. An IVA, or Individual Voluntary Arrangement, is a private, legally binding agreement between you and your creditors. An IVA enables you to offer your creditors a structured repayment program over an agreed time period, which is normally 5 years. The IVA repayments are based on your disposable income (i.e. how much you can actually afford to pay back each month once your essential living expenses have been deducted). The IVA is proposed to your creditors through an insolvency practitioner, who acts on your behalf by seeking a vote of acceptance for the IVA from your creditors. It is necessary to achieve acceptance from 75% of your creditors before the IVA can be considered binding on all of them. Once accepted, an IVA protects you from your creditors takin
We have all been in the position of looking for a job, changing careers, etc. It is time consuming and patience challenging. We apply for job after job and never seem to get what we want even though we see people around us that always seem to get the job they want.Most companies will accept a resume and you should have one available just in case. If you are not good at writing a resume, use a service or an internet resume template. There are many free services on the internet to help you write a really good resume.If you are required to fill out an application, type it,if possible or print it neatly. this will be the first impression of your prospective employer. If your application is sloppy, it implies that you are sloppy in your work habits. Do not scratch out or white out mistakes. If possible, have a spare so you can fill out a draft and then the finished application.When responding to questions on an application, be truthful, even if it is not something you want to share. Truthfulness is of utmost importance!Should you get an interview, be on time for the appointment. If you are late, it indicates that you will probably be late to work. Early arrival is better than late arrival.Dress for th
What assets will be sold in Bankruptcy?
Any equitable interest with a saleable value which you own, i.e. properties, cars, caravans, properties abroad, time share, luxury goods, stocks, shares, investments and other valuable assets. If you own a part share of an asset, for instance a house, the ownership of your share passes to the Official Receiver. If you cannot arrange for a third party to buy your share of the equity, the Official Receiver can force the repossession and sale of it. If this asset is your home, you will be forced to move out.
Will Bankruptcy clear all my debts?
No. Bankruptcy will not clear any secured debts you may have. Also student loan company debts, fines, council tax arrears and family court orders for maintenance will not be included in a Bankruptcy.
What savings can you keep in Bankruptcy?
Pensions are generally protected in a bankruptcy, but savings, shares, investments and equity in property will lost to the Trustee.
What assets can you keep in Bankruptcy?
The trustee will generally allow you to keep a modest motor vehicle and any tools required for you to earn an income.
What other assets can you keep in Bankruptcy?
The trustee will generally allow you to keep your ordinary household contents, i.e. Tv, stereo, computer, sofa, washing machine, etc.
What about working whilst in Bankruptcy?
You retain the right to earn an income, but the effect Bankruptcy has on your position within a business depends on your occupation. If you hold a professional license, your regulatory body will need to be informed which may result in a suspension of your license. If you are a director of a business you will be required to resign your directorship and if you hold shares in the business they will be sold. If you are in a partnership, your fellow partners will be required to buy out your interest in the business. If you are a sole trader, you can continue to trade, but you will not be able to have any credit agreements with suppliers above ?500. If you are employed, you bankruptcy ought to have no effect on your right to work, however, if your occupation involves handling money and dealing with finances, your future employment will be at the discretion of your employer.
What about your privacy in Bankruptcy?
Because a Bankruptcy is a court process, details of which are in the public domain, your bankruptcy will be published in the press which may appear in a local newspaper.
What else could happen whilst in Bankruptcy?
If you receive an increase in income or inherit money from a deceased relative's estate, or enjoy a windfall like a lottery win, you will be obliged to inform the Official Receiver and make the money available to your Bankruptcy estate.
How long will my Bankruptcy last?
Your Bankruptcy will last for 12 months, after which time you will receive an automatic discharge. However, in cases where it is judged the debts were incurred through irresponsible or excessive spending you could be held bankrupt for a maximum of 15 years.
The IVA option.
What is an IVA?
An IVA is an alternative to bankruptcy. An IVA, or Individual Voluntary Arrangement, is a private, legally binding agreement between you and your creditors. An IVA enables you to offer your creditors a structured repayment program over an agreed time period, which is normally 5 years. The IVA repayments are based on your disposable income (i.e. how much you can actually afford to pay back each month once your essential living expenses have been deducted). The IVA is proposed to your creditors through an insolvency practitioner, who acts on your behalf by seeking a vote of acceptance for the IVA from your creditors. It is necessary to achieve acceptance from 75% of your creditors before the IVA can be considered binding on all of them. Once accepted, an IVA protects you from your creditors takin
Most people dream of having their own business whether online or offline. Most people want to get off the rat race and quit their 9 to 5 job. Most people want to live a happy and financial free lifestyle with no boss looking over your shoulder. Yet only a small percentage of people actually do it and even a smaller percentage actually succeed. Why?I’m sure many of you have considered having your own online business and living the carefree and financial independent lifestyle you have always wanted. Who doesn’t?Yet only a small percentage of people will take action and actually do something to make that dream come true. In my opinion, there are 3 reasons namely fear, focus and bad advice.Fear of failure and fear of being ridiculed by others.I had the same fear as well when I ventured into my own internet business. Starting your own online business means you do not have the luxury of a regular income every month and you have to start worrying about paying the bills and putting food on the table. To many folks, living without a monthly salary is a very scary proposition. So much so they do not take any action to change their way of life.They are afraid their friends, relatives and colleagues will lau
Will Bankruptcy clear all my debts?
No. Bankruptcy will not clear any secured debts you may have. Also student loan company debts, fines, council tax arrears and family court orders for maintenance will not be included in a Bankruptcy.
What savings can you keep in Bankruptcy?
Pensions are generally protected in a bankruptcy, but savings, shares, investments and equity in property will lost to the Trustee.
What assets can you keep in Bankruptcy?
The trustee will generally allow you to keep a modest motor vehicle and any tools required for you to earn an income.
What other assets can you keep in Bankruptcy?
The trustee will generally allow you to keep your ordinary household contents, i.e. Tv, stereo, computer, sofa, washing machine, etc.
What about working whilst in Bankruptcy?
You retain the right to earn an income, but the effect Bankruptcy has on your position within a business depends on your occupation. If you hold a professional license, your regulatory body will need to be informed which may result in a suspension of your license. If you are a director of a business you will be required to resign your directorship and if you hold shares in the business they will be sold. If you are in a partnership, your fellow partners will be required to buy out your interest in the business. If you are a sole trader, you can continue to trade, but you will not be able to have any credit agreements with suppliers above ?500. If you are employed, you bankruptcy ought to have no effect on your right to work, however, if your occupation involves handling money and dealing with finances, your future employment will be at the discretion of your employer.
What about your privacy in Bankruptcy?
Because a Bankruptcy is a court process, details of which are in the public domain, your bankruptcy will be published in the press which may appear in a local newspaper.
What else could happen whilst in Bankruptcy?
If you receive an increase in income or inherit money from a deceased relative's estate, or enjoy a windfall like a lottery win, you will be obliged to inform the Official Receiver and make the money available to your Bankruptcy estate.
How long will my Bankruptcy last?
Your Bankruptcy will last for 12 months, after which time you will receive an automatic discharge. However, in cases where it is judged the debts were incurred through irresponsible or excessive spending you could be held bankrupt for a maximum of 15 years.
The IVA option.
What is an IVA?
An IVA is an alternative to bankruptcy. An IVA, or Individual Voluntary Arrangement, is a private, legally binding agreement between you and your creditors. An IVA enables you to offer your creditors a structured repayment program over an agreed time period, which is normally 5 years. The IVA repayments are based on your disposable income (i.e. how much you can actually afford to pay back each month once your essential living expenses have been deducted). The IVA is proposed to your creditors through an insolvency practitioner, who acts on your behalf by seeking a vote of acceptance for the IVA from your creditors. It is necessary to achieve acceptance from 75% of your creditors before the IVA can be considered binding on all of them. Once accepted, an IVA protects you from your creditors takin
What if this year;You made one more prospect phone call every day? You asked every prospect and client for a referral? You eliminated one destructive sales habit? You increased your market awareness with better networking skills? You attended a sales seminar or sales boot camp that your company didn’t pay for? You stopped accepting prospect’s excuses? You became the most knowledgeable person in your industry?These questions are endless and I won’t give you more to think about than you have time for today or even this week.But I will share with you a simple truth – if you want to sell more every year you have to get better every year.Let me get to the heart of the matter. If you have been receiving my tips for more than a few months you know that I have spent little time promoting my books, CD’s and boot camps. If you enjoy my tips and benefit from just a few hundred words once a week I would ask you – have you yet purchased one of my over 100 books, manuals or CD’s?If yes, I hope you have enjoyed them and benefited from them. If not, why haven’t you? Is it the money? Remember the cost of not learning is far higher than the investment in learning. Is it
What about your privacy in Bankruptcy?
Because a Bankruptcy is a court process, details of which are in the public domain, your bankruptcy will be published in the press which may appear in a local newspaper.
What else could happen whilst in Bankruptcy?
If you receive an increase in income or inherit money from a deceased relative's estate, or enjoy a windfall like a lottery win, you will be obliged to inform the Official Receiver and make the money available to your Bankruptcy estate.
How long will my Bankruptcy last?
Your Bankruptcy will last for 12 months, after which time you will receive an automatic discharge. However, in cases where it is judged the debts were incurred through irresponsible or excessive spending you could be held bankrupt for a maximum of 15 years.
The IVA option.
What is an IVA?
An IVA is an alternative to bankruptcy. An IVA, or Individual Voluntary Arrangement, is a private, legally binding agreement between you and your creditors. An IVA enables you to offer your creditors a structured repayment program over an agreed time period, which is normally 5 years. The IVA repayments are based on your disposable income (i.e. how much you can actually afford to pay back each month once your essential living expenses have been deducted). The IVA is proposed to your creditors through an insolvency practitioner, who acts on your behalf by seeking a vote of acceptance for the IVA from your creditors. It is necessary to achieve acceptance from 75% of your creditors before the IVA can be considered binding on all of them. Once accepted, an IVA protects you from your creditors takin
While many factors influence the rankings of a web site, any search engine optimization effort isn’t worth even a second of your time without one and single unknown: relevant and competitive keywords.Let’s examine an example: a local moving company decided to optimize its website. It knows (or assumes that it does) that the most popular keywords for their type of business are “movers” and “moving”. At a first glance, looks like everything’s fine: the keywords seem to be relevant, and should produce good results. However, there are two mistakes made here. The first one is keyword relevancy. What’s the use for our local moving company of people that are looking for “movers” or “moving” in Denver, CO, Boston, MA or New York, NY, if they are located and offering services in and around San Francisco only?Another mistake is keyword effectiveness. It’ll take much more time and effort to get top rankings for such popular and competitive general keywords as “moving” and “movers” than to get same results for something more specific and relevant, such as “movers San Francisco” or “moving San Francisco”. Not only are these keywords more likely to convert visitors to buyers, but also it’s a much easier and less time-consuming ta
How long will my Bankruptcy last?
Your Bankruptcy will last for 12 months, after which time you will receive an automatic discharge. However, in cases where it is judged the debts were incurred through irresponsible or excessive spending you could be held bankrupt for a maximum of 15 years.
The IVA option.
What is an IVA?
An IVA is an alternative to bankruptcy. An IVA, or Individual Voluntary Arrangement, is a private, legally binding agreement between you and your creditors. An IVA enables you to offer your creditors a structured repayment program over an agreed time period, which is normally 5 years. The IVA repayments are based on your disposable income (i.e. how much you can actually afford to pay back each month once your essential living expenses have been deducted). The IVA is proposed to your creditors through an insolvency practitioner, who acts on your behalf by seeking a vote of acceptance for the IVA from your creditors. It is necessary to achieve acceptance from 75% of your creditors before the IVA can be considered binding on all of them. Once accepted, an IVA protects you from your creditors taking legal action, and also protects your assets from being seized by your creditors. Any outstanding balances on your debts that still remain at the end of the IVA will be written off by your creditors.
In an IVA, what happens if you own your home?
An IVA protects you from having to sell your home, but you will be required to release available equity from it via a re-mortgage. If you have part ownership of your home, you will only be required to release the proportion of your part of the equity a re-mortgage will allow. The IVA protects you from having to sell the property.
What assets will be sold as part of your IVA?
An IVA allows you to keep all your assets intact, although if you own a valuable asset that is not essential to your livelihood, i.e. a caravan, a second property or an expensive motorcar, you may be required to replace it with a more modest vehicle and give the balance of money to your IVA fund.
How will an IVA affect my savings?
Generally your pension will be protected, and modest contributions can continue to be paid in to it during your IVA. It is possible to exclude assets from your IVA but you will be required to inform your insolvency practitioner of any savings, stocks, shares and other investments you may hold.
What other assets can I keep whilst in an IVA?
All personal possessions and household contents will be protected in the IVA.
How will an IVA affect my work?
An IVA is not Bankruptcy, therefore you are able to continue as a director in a business. Also professional license holders are able to continue practicing. Partnerships can also continue to trade, and because the IVA is a private agreement, your employer will not be informed.
How will an IVA affect my privacy?
The details of your IVA are not published in the press, however they will be held on the IVA register which is a public record.
What other effects will my IVA have?
You will be required to inform your insolvency practitioner of any inheritance or good fortune gains like a lottery win, and these funds will be made available to your IVA fund. Your finances will be subject to an annual review by your insolvency practitioner for the duration of your IVA and adjustments to your IVA payment will continue to be based on affordability.
How long will an IVA last?
An IVA can vary in length from 1 payment to 60 payments, but a standard IVA will last for 5 years.
What debts will an IVA clear
Your IVA will clear only your unsecured debts, e.g. personal loans, credit cards, catalogues and overdrafts. However, an IVA will not clear secured debts, fines and family court orders for maintenance.
What happens after my IVA finishes
You will be debt free. You will receive a certificate of completion from your insolvency practitioner, and you should inform the relevant credit reference agencies, e.g. Experian or Equifax, of the successful completion of your IVA for them to update your credit file.
As you can now see, the IVA is a real alternative to Bankruptcy.
An IVA is not an easy solution, and neither is it always a 'better' solution, but if you are in any doubt which option you ought to be pursuing, take the time to do your homework. There are specialist companies available that dedicate their services to helping you make this decision.
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