Our calculator will help you to decide whether an IVA is right for you.
Repaying debts can be one of the most serious problems in any individual’s life. Avoiding debt repayment is never an option. When you end up taking out new loans to solve existing financial problems, you can potentially be creating a whole new problem due to the repayments due on the new debt. If not managed properly, financial problems can rapidly grow and you can end up in a vicious circle. If you are struggling with debt problems, you should seek professional debt help.
The most serious of debt problems can be solved through seeking professional debt advice and obtaining an expert’s opinion can provide you with the tools to improve your situation. You may be advised to take the debt consolidation route, where all of your debts are bundled into a single loan, or possibly your situation may be suited to an alternative solution. Debt advice can play a crucial role in helping to get out of debt and avoid the stresses associated with it.
If you are trapped by the burden of your debts and are actively seeking debt help to overcome them, you must make a serious commitment to taking control of your finances. Bankruptcy is always an option, though rarely recommended due to the negative effects on your credit file, property ownership and employment prospects. A possible alternative to bankruptcy is the Individual Voluntary Arrangement, or IVA. An IVA can help you to clear your debts without affecting your home or employment prospects.
An IVA is a tailor-made debt repayment plan based on your individual circumstances. In the majority of cases, an IVA will involve the creditors writing off a portion of the debt, thus reducing the total to be repaid. Additionally, in an IVA, interest charges are frozen and creditors are forbidden from contacting you to chase repayment. All correspondence between you and your creditors must be done through the supervisor of your case.
Providing an IVA proposal is accepted, the debtor simply makes a single payment each month to their IVA provider for a period of, usually, five years. After the IVA has been completed, any remaining debt is written off and the debtor can look forward to a debt-free future.