1. What makes an IVA better than bankruptcy in Miss M's case?
Miss M can retain her existing job as an insurance agent. In contrast, a bankrupt cannot act as a company director or may not practise in certain professions such as lawyer, estate agent or insurance agent, etc. The bankrupt cannot purchase luxuries such as new car or travel overseas unless the bankrupt has reasonable grounds to do so.
Although the Official Receiver or the Nominee may approach Miss M's employer to gather information about her case, this will not be carried out unless it is necessary to do so. Miss M can also avoid the stigma of bankruptcy, and be free from the legal restrictions imposed on a bankrupt. For example, she can travel freely in and out of Hong Kong without having to report to the Trustee or the Official Receiver. She can also act as a company director or an insurance agent.