Consumer debt in the United Kingdom is at an all time high. Debt has been steadily increasing in light of the current financial situation being faced around the world. It’s tough times right now and many people need help with their finances. It’s important to remember that financial literacy in this country is extremely low, [...]
Consumer debt in the United Kingdom is at an all time high. Debt has been steadily increasing in light of the current financial situation being faced around the world. It’s tough times right now and many people need help with their finances. It’s important to remember that financial literacy in this country is extremely low, and you’re not alone. There are many services that can help you out.
An IVA, Individual Voluntary Arrangement, is a method used for resolving debt issues and is a way to avoid bankruptcy. An IVA is a contractual agreement arranged with creditors based on the borrowers own circumstances. An IVA can be structured around the borrowers assets or income or a combination of these. An IVA is for large amounts of debts that cannot be repaid.
A Insolvency Practitioner (IP) is used to guide you through the IVA negotiation process and their role changes during each stage of the IVA process. In order to get an IVA it must be administered through a Licensed Insolvency Practitioner.
An IVA is a great alternative to bankruptcy. If an IVA is accepted up to 75% of your debt can be written off which is great for you and for creditors because creditors get paid some money rather than none, and your credit isn’t hurt as much.
The repayment period for an IVA is five years. During this five your period you don’t incur any interest on your loans and your payment amounts are realistically based on your ability to pay.
An IVA is not a short-term option, it’s more of a medium to long-term option that can help you become debt free and start living a healthy life. With an IVA you have the ability to be debt free in five years or less.
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