If you feel that an IVA is not the right option for you or you do not qualify for an IVA then there are other options for your to explore.

Here are your alternatives to an IVA.

Bankruptcy: Bankruptcy will clear all your unsecured debts completely, you could lose any higher valued assets that you have, if you are a home owner then you could face losing your property. There are certain occupations that will be affected by bankruptcy also. Once bankrupt your creditors will no longer be able to take action against you so all creditor hassle, bailiff threats and debt collection agencies will stop. You can be discharged from bankruptcy within 12 months due to the enterprise act 2002.

Debt Management: A debt management plan will require you to make one lower affordable monthly repayment over a certain period until the debt is paid off. Due to its informal nature, it offers no legal protection against your creditors and no debt will be wiped off. Freezing and stopping Interest and charges cannot be guaranteed either. Debt management will lower the monthly repayments and is suitable for people to use in the short term. Debt management may be suitable for people who do not qualify for an IVA and may not be suited for bankruptcy.

Debt Consolidation loan: A debt consolidation loan will enable you to consolidate all of your debts into one secured monthly repayments. In theory you are getting one bigger secured loan to pay off all your unsecured debts and be left with just one lower monthly payment and interest rate than your current debts. You need to make sure that you will be able to afford the repayments as failure to do so will put your house at risk of being repossessed. A debt consolidation will help out with making your monthly repayments lower but you are just shifting the debt to one bigger debt that could put your house at risk.

Unsecured Lending: If you are exploring debt solutions then usually this may not be an option as you could already have a bad credit rating and find it hard getting a sensible interest rate. If you have tried your bank and have been declined then you will probably find it difficult to obtain credit elsewhere at a decent rate. If you are thinking about unsecured lending as a solution to your debt problem, all you are doing is shifting the debt to a bigger one and if you are not able to keep up with the repayments then you are back to square one.

Author: Elliott Parker

About the author:
Elliott Parker is an advisor at Clear Insolvency.
Bankruptcy Information, IVAs and Debt Management Information and Assistance

Article source: Free Bankruptcy Articles.