Consumer debt is a growing trend in the UK, with more people filing for bankruptcy than ever before. For those looking to avoid bankruptcy and keep possession of their assets an Individual Voluntary Agreement (IVA) can be the most desirable option.
What is an IVA?
In the UK, an IVA is an alternative to bankruptcy. It is a contractual formal agreement to pay outstanding loans to creditors, through a third party such as an insolvency practitioner. The terms of the agreement can be based on income, capital, third party payment arrangements or a combination of any or all of the three. A person’s income after paying necessary living expenses is put toward the IVA to pay his/her debts.
How Can It Help?
As well as keeping many individuals from bankruptcy, an IVA from iva.net can protect those with large amounts of assets such as cars or properties. Assets are not at risk with an IVA as they are with bankruptcy. Also for those who have already been declared bankrupt, an IVA can help get bankruptcy orders overturned, so long as it is done before orders are discharged.
Who Qualifies?
Anyone who has serious debt issues and meets the following minimum requirements can qualify and should apply for an IVA:
- £15,000 or more of unsecured debt
- £200 or more per month to put towards IVA payments
- Have more than 3 debts owed to different creditors
- Have regular income
An IVA may be a wise choice if one or more of the following apply:
- Your creditors disagree with informal debt resolving arrangements
- You have tried and failed at informal debt arrangements
- You have too many creditors for an informal agreement
- You are facing the possibility of bankruptcy
- You are already bankrupt and want to reverse the decision
Where Can Additional Information be Found?
The UK Insolvency Helpline is a wonderful resource for those considering their options for debt management. They provide business and consumer debt advice services, and have an IVA advice team. They have staff on hand 24 hours a day to answer any questions you may have.
UK Insolvency Helpline
Telephone: 0800 074 6918
Website: insolvencyhelpline.co.uk
Finding solutions to a difficult debt situation can be an arduous and intimidating task. With an IVA, many people are realizing that bankruptcy is not the only option, and it is still possible to keep their possessions while getting out of debt at their own speed. If you have unresolved debt, or questions about an IVA help is just a phone call away.
Tags: iva help, iva qualifications, uk iva
