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The Bankruptcy Service Case Study Example: Bankruptcy v Individual Voluntary Arrangements (IVAs)

The following bankruptcy case study is a fictitious example, designed to help you understand working situations where bankruptcy is and isn't appropriate.

A look at whether to take bankruptcy or an Individual Voluntary Arrangement (IVA).

I have sadly had to close my business down due to unpaid invoices from a couple of big customers. As a sole trader I am considering an IVA. Would you recommend this?

IVAs are designed to protect assets such as properties where there is positive equity, or to protect businesses, especially when directorships are involved – So I’m not convinced it’s the right option for you, as it could be a more expensive option than is necessary. I can’t give a detailed proposal as I would need to know more details, so would suggest that you discuss your situation with an expert debt advisor as soon as possible.

For more details on Individual Voluntary Arrangements (IVAs), click here.
Free debt counselling and advice is also available from the Money Advice Service available at: doesn't charge a fee for its bankruptcy service, but receives remuneration from the partners that we work with in order to keep operating. Those partners must charge a fee to the customer to likewise cover operational costs, and this amount will vary depending on the solution offered, and the terms of the parner. For details of these terms, please refer to the website of the organisation dealing with your bankruptcy. Upon application with, we will forward your information on to one of our specialist debt partners. You will then be contacted, and you will be able to explain your case, and expert advice will be offered in order to ascertain the most appropriate debt solution.