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Pay Your Mortgage Before Unsecured Debts.
We are getting more and more enquires from homeowners looking for repossession advice. A typical situation is that they have built up mortgage arrears in order to keep up with unsecured loan repayments. [more...]

The End Of The 100% Mortgage
The Abbey, the only remaining lender to offer a 100% mortgage are to pull this offer on 9th April. [more...]

1 in 4 Borrowing To Consolidate Debt Go On To Borrow More.
A quarter of people taking out a loan to consolidate their debts go on to borrow more, according to a survey commissioned by Uswitch. [more...]

Mortgage Criteria Gets Stricter
Borrowers are finding it tougher to find a mortgage as cautious lenders continue to withdraw and change deals. [more...]

Bankruptcy and IVA Advice

An IVA (Individual Voluntary Arrangement) is an alternative to Bankruptcy which can write off upto 70% of your debt and allow you to become debt free guaranteed in 60 month.

		Write off up to 70% of debt An IVA stops interest and charges. An IVA stops harassment & court action.
		Debt Freedom in 60 months An IVA allows you make repayments at an affordable rate for 60 months, after which the remaining debt is written off.
		A Bankruptcy Alternative Less severe and many benefits over Bankruptcy, especially if you are a homeowner with equity to protect.

In IVA is a legal process for people with serious debt problems. For those that qualify, an IVA is the best method to sort out those worrying debt problems once and for all.

In short an IVA can write off up to 70% of your debts (subject to your circumstances,) and if you keep up the affordable monthly payments, you will be debt free in 60 months, guaranteed.

An IVA Debt Solution achieves the following:

• Writes off up to 70% of your debts.
  This is dependant on approval of 75% (by value of the debt) of your creditors, and you maintaining the agreed repayment 60 months. Typical write off amount are around the 50% level.
• Debt Freedom in 60 months.
  In 60 months you will be debt free, the rest is written off.
  
• Stops interest and charges.
  Your debts will not increase and interest will be frozen at the point the IVA proposal is appoved by your creditors.
  
• Stops harassment.
  Stops creditors and debt collectors from chasing you. Legally, no one can chase your for your debts, even if they did not vote in favour of the IVA.
• Stops court action.
  Can stop bankruptcy proceedings and bailiffs
• Replaces existing CCJ's.
  Any court order requiring you to repay your debts can be included in the IVA.

Consequences of personal Bankruptcy:-

• Bankruptcy is always advertised:
  The Bankruptcy application will be advertised in the London Gazette and the local press where you live.
• Notification is made to everyone financially connected:
  Your bank, building society, creditors, landlord, etc will be informed immediately.
• Bankrupts cannot run a business:
  Any business you own will be closed immediately.
• Future assets will be lost:
  Any asset that might have been acquired during the term of the bankruptcy, such as inheritances, insurance payout's/maturities, equity in property, windfalls, etc., and possibly pension income.
• All accounts closed:
  Bank accounts, credit cards will be closed. Anything that is being purchased by lease or HP, such as your car, will be immediately returned to its owner.
• Previous Bankrupts:
  People that have been bankrupt before should be very careful about being made bankrupt again, as the minimum period of bankruptcy is 5 years, and could continue for up to 15 years before being discharged.
• Professional & Business Status:
  Certain employment situations will be prejudiced by being declared bankrupt, and professional and business status will be lost. Membership of many associations and societies will also be lost.

Advantages of an IVA

• There is not the stigma or publicity that normally accompanies Bankruptcy.
• A debtor can continue to trade in a business to generate income.
• The debtor is involved in the choice of assets made available to creditors since the arrangement is designed to suit the debtor's situation. All this is providing the creditors are no worse off than if bankruptcy had taken place.
• Administration costs are normally lower than Bankruptcy, enabling higher payments for creditors.
• Creditors can claim tax relief against bad debts just as with Bankruptcy.
• Creditors who vote against the IVA are still bound by it as long as the required majority (75%) in value of the creditors who have voted agree to it.
• Creditors recognize that they must accept less than all the money owed.
  The debtor does not suffer the same restrictions imposed on bankrupts. For example, the debtor can still be a company director or still hold certain positions in the armed forces.

IVA FAQ

View IVA FAQ »

3 Random Q&A's from the database:-

Should I stop paying my creditors once i decide upon an IVA? In terms of % amount of total debt. How many creditors need to attend the creditors meeting ? How will the monthly IVA payments be made? What is the minimum number of creditors required for an IVA ? Will I have to close my bank account ? Are some creditors less likely to approve an IVA than others ? Does the Insolvency Practitioner (i.e. ourselves) represent the Creditor or the Debtor ? Can an IVA be settled early ? Can one individual creditor refuse to accept an IVA ? Can I keep using my credit cards or take out a new loan during an IVA ?

Not everyone qualifies for an IVA.
Call us now to discover if you qualify, or Submit the IVA Enquiry form.