We’ve all seen the adverts on TV that claim they can get your debts written off. Some people receive phone calls, others get letters or text messages from companies that claim they can write off debts  – anything from 90% to 100% all due to new government legislation.

Just remember the old saying “if it looks too good to be true, it probably is”.

With an IVA you will usually agree to pay a fixed amount for 60 months, any equity in your property needs to be considered as you will need to look into re-mortgaging to release some of it. Modifications can be put forward and you could be required to make up to 72 monthly payments. Once you have successfully completed your IVA any unsecured debts, which are included in your IVA, will be written off.

With bankruptcy you risk losing any assets and could be required to pay an Income Payment Order for up to three years before being discharged from your debts. Depending on your circumstances, this can change.

Both are forms of insolvency and they should not be considered lightly as they can have serious consequences on your ability to obtain a mortgage, keep any assets or even obtain a bank account.