Financial

An IVA is Not a Declaration of Bankruptcy

Although an IVA works as a case of declaring one’s insolvency it is not necessarily a means of declaring that someone is bankrupt. This comes from how the assets that a person has do not have to be fully liquidated when entering an IVA with an agency like CCS. The Individual Voluntary Agreement will be used to simply arrange debts in a way that will make them easier to pay off. This does not cancel out debts like a bankruptcy can.

This is important to know because of how harmful bankruptcy can be to one’s name. A bankruptcy declaration can be harmful in that it will cause a person to lose points on a credit file.

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