If you feel that debts are getting better than you and that there is no other method except going for bankruptcy, you should try the IVA debt advice first.
This is a chance that may help you from avoiding bankruptcy.
Under IVA advice, your debts are analyzed and a common point is reached so that you are saved from being harassed by the creditors.
The creditors are also assured that their debts will be repaid.
This is a legal process.
You have to first appoint a paralegal, hereafter known as nominee.
The nominee will talk to you to get a complete picture of what your current financial situation is.
He will assess your income, your expenses, and your debts too.
There is no use hiding anything from the nominee as things will be easier if everything is transparent.
Based on the information you provide, the nominee will prepare a draft proposal which includes your financial conditions, your income details, and how you plan to repay the debts over a period of time.
This rough proposal is then presented to the court which has to approve it.
Upon approval of the IVA debt advice, the copies of the proposal are sent to all the creditors.
They are given 15 days time so that they can think over it.
A meeting is fixed after the 15 days period.
In the meeting, you as well as your creditors have to agree to the proposal.
It is not necessary that all your creditors agree.
Even if a considerable number of creditors, whose total loan amount is coming to 80 per cent of the aggregated loan amount, agree to the proposal, it is binding on all of them.
You are saved from harassment.
However, you too have to restrain yourself from taking more loans or even using your credit card.
The IVA debt advice can be availed at any online loan company that offers such scheme.
You can also go for a paralegal on your own.
But it is necessary that you are in the right hands so that you do not end up paying the fee for nothing.