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Taking the IVA way out of debt

Posted by admin in Finance, debt management on November 15, 2011 | no responses

Debt advice

One way out of debt could be with an IVA or Individual Voluntary Arrangement. It is a form of insolvency which is noted on your credit record for six years and on the insolvency register during an IVA. Insolvency may sound serious – and it is – but for many people in debt, it can also be a really helpful way to deal with unsecured debts.

If you look for debt advice, the advice you get will depend on how much debt you have, what kind of debt you have and how much you can afford to repay. You’ll find a debt advice service at www.debtadvicenow.co.uk, who can advise you on the options available to you while you’re in debt.

Why people choose an IVA

If your unsecured debt feels insurmountable at the moment, if your repayments seem to be eaten up by interest and if you have no idea when (or even if) you’ll be able to repay what you owe, an IVA could help you. On an IVA:

 

  • You are given a clear indication of when you’ll clear your unsecured debt – usually five years from the start – as long as you uphold the terms of the IVA.
  • You’ll get professional help from an Insolvency Practitioner, who will negotiate fair monthly payments that you can afford, with your lenders.
  • You can lower your monthly payments on an IVA.
  • You won’t have to sell your home, but you may be asked to release equity in your home.
  • You get a legally binding agreement that requires you to make monthly payments for the duration, but also protects you against legal action from your lenders.
  • Your lenders will commit to writing off any outstanding unsecured debt once your IVA completes successfully.

What to do now

If you are really worried about your debt, it’s time to speak to a debt expert. It may be that some budgeting advice could help you find a way out of debt. Some debts are a real burden – when you’re struggling with finances it can be difficult to know where and when to get help.

You could take the first step by speaking a debt expert who deals with debt every day and can tell you more about your options.



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