Getting Financial Help

Getting financial help is not a difficult task and has become even easier with the rise of the Internet. Many financial institutions can provide you with financial advice. If you are struggling with a poor financial situation, such as being unable to meet loan repayments an Individual Voluntary Arrangement, or IVA, may be a solution to your problems. IVAs are an alternative to bankruptcy and are a legally binding arrangement made between you and your creditors. Unlike in a Debt Management, Plan, creditors in an IVA are not allowed to chase for repayment and are not allowed to continue applying interest or charges to your debt.
 
An IVA usually lasts for five years, although can be as short as a few months, or for a longer period, depending on your circumstances. Payments into an IVA are based on your income and expenditure to ensure that you have enough money to live on and in most cases, you will only have to pay back a portion of your debt.
 
IVAs must be arranged through a licensed insolvency practitioner who will assist you in creating your proposal and present it to your creditors. Once your creditors have approved your IVA, your insolvency practitioner will supervise the running of the IVA ensuring that all involved parties adhere to the terms of it.
 
The insolvency practitioner will charge his fee to the creditors, this being taken from your monthly contribution such that you never pay more than originally agreed. There is typically a clause in the IVA which allows for increases in contributions should your salary improve significantly or if you receive a bonus or overtime payment.

Before entering into an IVA you will be given financial advice and your situation will be assessed to ensure an IVA is the best solution for you.