The alternative to bankruptcy may be an IVA. This procedure was introduced as part of the Insolvency (Northern Ireland) Order 1989 and has grown in popularity in recent years. Simply, an IVA is a private agreement between you and your Creditors to repay a percentage of your debt over an agreed term.
The agreement is put together by a licensed Insolvency Practitioner who you nominate to act on your behalf. If 75% of your Creditors who vote at a meeting support the proposal then it will bind all of your Creditors.
An IVA does not convey the stigma that some associate with Bankruptcy mainly because information is not released into the public domain. In addition, interest is frozen and the outstanding debt at the end of an IVA is written off.
MKB Law works with a number of local insolvency practitioners in making IVAs work for our clients.