For people within
the Uk who discover themselves in severe debt issues you will find numerous
potential solutions. These debt solutions include bankruptcy, debt management
ideas and consolidation financial loans. More recently a new choice has
emerged. This option is known as an IVA. An IVAs also known as an IVA is really
a lawfully binding agreement made between a person in debt and their creditors.
Within an IVA a persons combined debts are consolidated right into a single
regular payment to be paid for a set period of time. At the end of the IVA any
remaining money owed is written off from the creditors leaving the debtor
totally free from debt. Typically an IVA will final for five years although the
particular reimbursement time period can vary according to individual
Individual Voluntary Arrangements are not an appropriate answer for all sorts of debt issues. To qualify for an IVA usually the person must have money owed in excess of £15,000. These debts will also usually need to become divided between more than 1 creditor. An IVA cannot begin with out the arrangement of at least 75% of the creditors. IVAs can only be setup by licensed insolvency practitioners. If an individual is battling debt then stepping into an IVA does have several advantages. The primary benefit of the IVA is that it could considerably reduce a person's debt repayment, occasionally by as much as two thirds. Additionally all curiosity and charges referring to the debt are stopped which means that the debt will not improve. The disadvantage would be that the relatively stringent qualifying requirements means that many people in debt won't qualify for one. Also ought to an individual at any point not be able to satisfy their repayments then bankruptcy will most likely be the sole option.