- Wednesday, 27 May 2009A person who takes on an
individual voluntary arrangement (
IVA) to resolve their outstanding debts may be regarded more favourably by future creditors than someone who declares bankruptcy, according to a panel of financial advisers.
Responding to a reader query posed in the Independent, the team of financial advisers suggested that 28-year-old psychology masters student Faze Al may wish to consider a number alternatives to bankruptcy - which they said is an agreement which should not be "entered into lightly".
While bankruptcy could affect Mr Al's long-term employment prospects - the MOD and the NHS, for example may decline work to someone who has declared themselves bankrupt - taking on an IVA would show he is acknowledging his debt and may also have a less severe impact on his credit rating.
The current economic turmoil is forcing may people to re-examine their personal finances.
Last week, a reward adviser at the Chartered Instituted of Personnel and Development suggested that in some cases, negative inflation on some indices could lead to decreased pay.
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