The alternatives to bankruptcy are debt agreements and personal insolvency agreements (PIA), and I don’t like them.
Why? Because, unlike with bankruptcy, the law does not provide for the amount of income you can keep in order to cover your everyday needs.
This means you can over-commit to servicing the debt, leaving yourself without enough money to take care of yourself and your family. In other words, you are still under financial pressure with all the negative consequences involved.
There is also no limit to how long these two alternatives can remain in force, so they could take longer to be resolved than the three years imposed by bankruptcy.
Debt agreements and PIAs do not release you from your debts until they are finalised. If they go on for five years, you will not be released from your liabilities until that time, providing you have met all the terms of the agreement.
Be aware that I have heard of a debt agreement that went for seven years! In my experience, the longer these options go on, the harder it is for the person involved and the less likely it is to be completed successfully.
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