Do you know what an IVA is? It is a way to get help with serious debts in the UK. This could be the answer if you are in a bind with credit cards and other unsecured loans. Many people end up in trouble because of credit cards. Once they get behind on the payments things just get worse. It seems impossible to get out from under the pressures of debt. An IVA or Individual Voluntary Arrangement may be just what you need to eliminate all that debt once and for all.
An IVA is an arrangement you make with your creditors. You agree to pay them a smaller portion of what you actually owe them. Most creditors will agree to this option. They know that you are struggling and the next step will probably be bankruptcy. At least 75% of the creditors must agree to it for it to go through.
This is a legal binding contract that you make with the creditors. They cannot change their mind after this has started. You will need to use an experienced Insolvency Practitioner to set it up for you. The agreement will affect your credit rating for about six years. You will make payments into the arrangement for up to five years. At the end of the five years you will be debt free as any remaining debts get written off.
Not everyone can file an IVA, however. You must reside in the UK and have at least 15,000 pounds in debt owed to at least three creditors. If you have less than 15,000 in unsecured loans you will have to file bankruptcy or use some other means to get out of debt.
You will not lose your home with an individual voluntary arrangement although you may have to use the equity in it to pay your creditors. The amount you pay each month is based on the amount of money you have available to pay it. The Insolvency Practitioner will look at your income minus your bills and utilities. He will figure how much you need for food and clothing. What is left is what your payments will be based on. You may only pay back 75% of what you actually owe.
An Individual Voluntary Arrangement is a better choice than bankruptcy. It is true you will pay very little of your debt back with a bankruptcy but your credit will be affected for about ten years. This is ten years of not being able to purchase anything on credit or buying a house. It could affect your getting a car loan. Ten years is a long time to be stuck with bad credit. Bankruptcy can also affect your job. Depending on where you work you may have to step down from your position. Bankruptcy is also advertised in the paper so anyone can learn of your problems.
In Scotland there is the Protected Trust Deed. This is similar to an IVA. It is a way to get out of debt without filing for sequestration. This is what a bankruptcy is known as in Scotland. If you need help with debt you should consider an IVA or Protected Trust Deed. It is better for you than bankruptcy or sequestration.
The Author provides free debt help and advice through a series of blogs, websites and articles offering guidance on the best ways to get help with debt problems.