Released on = March 24, 2006, 8:57 am

Press Release Author = Clear Start

Industry = Financial

Press Release Summary = IVAs offer an affordable and legitimate alternative to
bankruptcy and enable debtors to make a fresh start.

Press Release Body = According to official statistics, around 47,000 people were
declared bankrupt in 2005. Although bankruptcy may seem to be the only option for
many, the decision to file for bankruptcy should be considered very carefully. This
is because there are a number of far reaching disadvantages associated with going
bankrupt.

Aside from the social stigma, if you are declared bankrupt you:

 Lose your business and professional status
 You are not allowed to hold public office
 You will not be able to get credit over £500 without disclosing that you
have been made bankrupt
 Face a number of restrictions with regards to running a business
 Your employment prospects will be prejudiced

However, according to Clear Start, the UK Consumer Debt Service, there is hope in
the form of an IVA. IVAs were introduced by the government as a legitimate
alternative to bankruptcy.

With an IVA, debtors make monthly payments based on what they can actually afford
over a five year period. It is not uncommon for a debtor to pay as little as £200 a
month into an IVA. After five years, the debt is deemed to have been cleared. This
happens even if the creditors end up getting less than 20% of their debts repaid.

Furthermore, IVAs do not have any of the stigmas, restrictions or disqualifications
associated with bankruptcy.

As a result, IVAs offer an affordable and legitimate alternative to bankruptcy and
enable debtors to make a fresh start.


Web Site = http://www.clearstart.org/iva.php

Contact Details = 5th Floor, Horatio House
77 Fulham Palace Road
Hammersmith
London
W6 8JA
Tel: 0800 138 5445
Fax: +44 (20) 8237 9756