Wednesday 19th of August 2009
The former Secret Millionaire Chek Whyte has had his bid to undertake an individual voluntary arrangement (IVA) rejected.
He will now have to go through a bankruptcy hearing, a route which the property developer wanted to avoid.
Indeed, many Britons who face debts of more than £15,000 may prefer to participate in an IVA, rather than being declared bankrupt, as this can be done privately and will not result in a bankruptcy hearing.
Commenting on the decision, Mr Whyte said he was disappointed that he will not be given the chance to repay his creditors through an IVA.
Speaking to the Nottingham Evening Post, he said: "Bankruptcy would be the easy way out for me because I’m an entrepreneur and in 12 months I would be back."
However, he added that bankruptcy could result in negative consequences that as a businessman, he may have avoided through an IVA.
Actor Neil Morrissey recently told the News of the World that he too did not want to go down the route of bankruptcy and would be paying his £2.5 million debts back through an IVA.
By Kimberley Parsons
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- Can an IVA protect me from climbing energy bills?
