For people in the UK filing for bankruptcy may not be your only option for getting out of serious debt. If you have steady employment and can afford to pay a modest amount each month to pay towards your debts you can get an IVA. This stands for an individual voluntary arrangement, which is an agreement between your creditors and you that you will make payments to pay back a portion of what is actually owed. The advantage of this being that you do not have to repay the full amount of the debt, only what you can manage to pay. You make payments for a fixed period and at the end of that time any debt left unpaid is written off.
This is a formal and legally binding agreement so is not so easy to get out of as something like a debt management plan. This was introduced by the UK government to provide people with a choice so that they do not always have to go bankrupt to wipe out serious debts.
The Pros of an IVA or Bankruptcy
Before deciding on whether this arrangement is going to be better for you than becoming bankrupt, you should know the pros and cons of each of these options. The main advantages of the individual voluntary arrangement are:
You get protection from court action so your creditors are not allowed to sue you.
It is not publicized so you can keep it private if you wish to.
You only pay back what you can afford to.
Your profession is not endangered.
You will be debt free when the agreement comes to an end.
Your home will be safe as you usually are not required to sell it.
You do not lose complete control of your assets to the extent that you do with bankruptcy.
You can keep your bank accounts, but will not be allowed overdraft privileges.
Creditors cannot contact you about any of your debts.
In terms of possible disadvantages, there are a few things you need to be aware of and bear in mind when making a decision. An IVA normally lasts five years where a bankruptcy only lasts one year. You must have 15000 pounds of debt owed to at least 3 creditors for an IVA to work. You must include all your creditors in the arrangement, but you only need the support of three quarters of them for it to be implemented. You must be able to afford to make a reasonable payment towards your debts each month.
There are also pros to a bankruptcy that need to be considered when making a decision. Some of the main benefits of a bankruptcy are that you only need to be 750 pounds in debt to start the process and it only lasts one year. Your debts will be eliminated immediately upon making the bankruptcy order and once the bankruptcy is final you are free from all your debts.
The disadvantages of becoming bankrupt are quite well known and numerous. Here are a few of them:
The process has to be made public through notices in the press.
You lose all control over your assets and you may be forced to sell your home.
If you are earning good money you will be ordered to pay a certain amount each month.
Any money you inherit will be taken to pay the creditors.
Your pension can be affected.
Your credit rating will be affected for about six years.
Showing posts with label Cons. Show all posts
Showing posts with label Cons. Show all posts
Thursday, July 12, 2012
Saturday, May 5, 2012
Pros And Cons Of Overseas Education
Today, studying abroad for various study program have become a trend among Indian students and. every year thousands of Indian students apply in various Universities abroad. Universities in US and UK receive high numbers of Indian applicants for their various regular and vocational courses. Overseas education is indeed a big breakthrough in someone's career and promises him/her many wonderful career opportunities ahead. Today, overseas education is not limited among the people of higher status and elite class but many middle class families across India and other countries of the world are also sending their children for overseas education for a bright future and well paid job.
There are various advantages of studying abroad; the first one is concerned with academics. You would find wide spectrum of courses in a foreign university with excellent education system and infrastructure. They use modern technique of teaching applications with highly qualified and proficient faculty.
The safe and sound environment of the university makes you very feel comfortable to get adjusted in a foreign land. You also get incredible chance to meet students of different nationalities and religions. It gives you plenty of exposure and knowledge about various cultures and creed. The exposure you receive from studying abroad would be very helpful in your career building and life. Pursuing education from a prestigious foreign university opens the doors of countless job opportunities for you. You are being offered a high paid job, respectable position and many other perks
Studying in foreign land also makes you proficient in the language of the country. For instance, if you are seeking overseas education from UK, US or New-Zealand where official language is English, you would be able to learn the language and gradually become a Master in English. Studying abroad also gives you wonderful opportunities to travel to other neighboring countries which would give you plenty of exposure and knowledge. You have a global network of social contacts by studying abroad.
Overseas education also gives you opportunity to work at your spare time thus, you get work experience as well and for some companies work experience is also an important requirement before recruiting the candidate. Studying abroad helps students to become more mature, confident and resilient and all such qualities are counted at their workplace.
However, everything has a flipside as well and overseas education also comes with certain demerits. Though overseas education promises you great future and rewarding jobs but it is very expensive for a middle class family to send their children for a higher education in US, UK etc. Most of these families take loans or other financial aids to sponsor the education.
For most of the people who have never been out of their limited circle and region, studying abroad can be a big cultural shock and many of them fail to adjust with the ultra modern lifestyle and open exposure in a foreign university. Another demerit of overseas education would be for those students who have slow grasping and learning power. It is difficult for them to understand course studies, as it is entirely taught in a different language. Students may also have to go through racial abuse and discrimination issues which are humiliating and stressful and sometime fatal. Long time separation from family and loved ones can also take a toll on you gradually.
There are various advantages of studying abroad; the first one is concerned with academics. You would find wide spectrum of courses in a foreign university with excellent education system and infrastructure. They use modern technique of teaching applications with highly qualified and proficient faculty.
The safe and sound environment of the university makes you very feel comfortable to get adjusted in a foreign land. You also get incredible chance to meet students of different nationalities and religions. It gives you plenty of exposure and knowledge about various cultures and creed. The exposure you receive from studying abroad would be very helpful in your career building and life. Pursuing education from a prestigious foreign university opens the doors of countless job opportunities for you. You are being offered a high paid job, respectable position and many other perks
Studying in foreign land also makes you proficient in the language of the country. For instance, if you are seeking overseas education from UK, US or New-Zealand where official language is English, you would be able to learn the language and gradually become a Master in English. Studying abroad also gives you wonderful opportunities to travel to other neighboring countries which would give you plenty of exposure and knowledge. You have a global network of social contacts by studying abroad.
Overseas education also gives you opportunity to work at your spare time thus, you get work experience as well and for some companies work experience is also an important requirement before recruiting the candidate. Studying abroad helps students to become more mature, confident and resilient and all such qualities are counted at their workplace.
However, everything has a flipside as well and overseas education also comes with certain demerits. Though overseas education promises you great future and rewarding jobs but it is very expensive for a middle class family to send their children for a higher education in US, UK etc. Most of these families take loans or other financial aids to sponsor the education.
For most of the people who have never been out of their limited circle and region, studying abroad can be a big cultural shock and many of them fail to adjust with the ultra modern lifestyle and open exposure in a foreign university. Another demerit of overseas education would be for those students who have slow grasping and learning power. It is difficult for them to understand course studies, as it is entirely taught in a different language. Students may also have to go through racial abuse and discrimination issues which are humiliating and stressful and sometime fatal. Long time separation from family and loved ones can also take a toll on you gradually.
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