Bankruptcy can be defined as the ultimate financial disaster for a person or an organization. Here, the person or organization has no means left to repay the existing debt burden. Filing for insolvency keeps you away from sound financial transaction and business activities. There are several alternatives available to this extreme financial condition. One of them is IVA or individual voluntary agreement. In this agreement, insolvency practitioner prepares a suitable and long term repayment plan for you. However, this is subject to the clause that 75% of your lenders need to agree with IVA proposal. Once agreed, it is legal binding and lenders cannot foreclose your property until you are obeying the rules of agreement.

Compared to bankruptcy, IVA offers several advantages. You can avail fresh loans to meet new financial constraints even if you are going through IVA. Nobody except lenders and the insolvency practitioner knows about this. Hence, your credibility is not at stake and you can run normal business. After the completion of IVA tenure all debt burden on you are wiped out even if you have not made the complete payment.   If your financial disorder is at the early stage you can consider other financial tools like debt management and debt consolidation. For debt management, quality sites like Debtsolver can help you.