BankruptcyAn individual may be made bankrupt only by court order following the presentation of a bankruptcy petition.
In the event that an individual does not wish to propose an IVA, or a creditor is pursuing a valid debt which the individual can not repay, then bankruptcy is an option. Current legislation allows the bankrupt to continue a modest lifestyle with any significant assets being realised for the benefit of creditors. Virtually all debts of the individual would be dealt with by the Trustee in bankruptcy. In normal circumstances the individual would be bankrupt for a period of 12 months.
Partnership Voluntary Arrangement (PVA)A PVA is formal arrangement between creditors and the partnership, allowing a proportion of debt to be paid back over time.
Similar to a CVA however the partners may propose interlocking voluntary arrangements with each partner making proposals for their own debts and the debts of the partnership. Alternatively the partnership may propose a PVA usually accompanied by voluntary arrangements for each partner.