This post is sponsored.
If you are struggling with debt, you will undoubtedly know how stressful dealing with creditors and trying to work out a payment plan can be. In fact, if you have unsustainable amounts of debt, you may think that bankruptcy is the only solution. But before you look into bankruptcy, you should definitely consider all available alternatives. An IVA is among the most attractive of the options potentially at your disposal. Even though bankruptcy can discharge some debt, after all, it often has a devastating effect on an individual’s credit report. An IVA – which stands for Individual Voluntary Arrangement – can help people resolve their debt within 60 months.
This doesn’t only sound good, it may be an obvious improvement on declaring bankruptcy. So what is an IVA? To put it simply, an IVA is a legally binding contractual agreement between an individual and debt holders. Typically, under this agreement, a individual can have up to 70% of his or her debt written off. He or she will pay the remaining amount over a 5 year period.
This program can be adjusted to an individual’s unique circumstances. 75% of Creditors by debt value must approve the IVA proposal , the arrangement is then binding on all creditors. This may seem improbable, but in fact there is an incentive to accept an IVA because they will likely receive more payment than they would in a bankruptcy. For the consumer, an IVA offers a chance to discharge a majority of debt contained within the IVA, and, unlike bankruptcy, you are extremely unlikely to lose your home. IVAs generally stay on a person’s credit report for 6 years.
To qualify for an IVA, you must be a UK citizen, owe more than £12,000 , and have two or more creditors. Companies such as Debt Advisory Line offer advice and support on how to structure an IVA that will meet your needs and your creditors’ approval. Contact us now and without any obligations, to find out more about the details and how we can help you control your debt. (Note: The IVA only relates to debts contained within it, i.e., you will only be debt free if you have no other debts).