‘Several factors’ affect bankruptcy decisions.

Deciding whether to opt for an Individual Voluntary Arrangement (IVA) (IVA) or bankruptcy depends on several factors, an industry insider has claimed.

The head of restructuring and recovery at accountants Baker Tilly, Geoff Carton-Kelly, told the Telegraph that deciding which option to take centres on many considerations and “not just the size of your debt”.

If you have no other assets, then bankruptcy “may not be such a bad option”, yet if you have a job and own a home, an IVA may be “a better bet”, he said to the paper.

He added that the bankruptcy regime is not as tough as it used to be.

Baker Tilly has experienced more interest from buy-to-let landlords who cannot remortgage, he stated.

In the first quarter of this year, 37,221 landlord possession claims were issued using both standard and accelerated procedures, according to a report by the Ministry of Justice.

By Jamie Price