We can throw a third option in this mix as well which is a Debt Relief Order or DRO.

All three (3) are forms of insolvency, and as such involve third parties, such as the courts, or Insolvency Practitioners.

When faced with insolvency, you may ask yourself which is the better option, Bankruptcy, an IVA, or possibly even a DRO.

There are 3 main factors that will help you decide as to which is best for you, and some instances these factors will dictate which form of insolvency is your only option:

The answer to these questions will guide you as to what is your best option.

Here is the basics for each option:


Debt Relief Orders

Individual Voluntary Arrngements/IVA’s

These are just basic outlines of each form of insolvency. But it gives you an idea of where you may be headed.

There also is the question and concern about debts that may be jointly held, debts in two or more names, such as with a partner or spouse.

In many instances, the finances are closely tied together, so both parties need to consider the same insolvency option. However, there can be instances where the parties have split up.

If one of the parties goes bankrupt or tries another form of insolvency, the creditor can chase the other party for the debt, as the account is the responsibility of both parties.

If any assets are jointly owned, only the portion of equity or portion the insolvent party has, would be involved in any insolvency proceedings. But as you can imagine, it gets complicated and complex.

With any form of insolvency, it is always best to get professional advice.

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