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FSA: Consumer Credit Directive will not be extended
The Financial Services Authority (FSA) and the UK Treasury have announced that the Consumer Credit Directive (CCD) will not be extended to include mortgage loans. [more...]

Government to provide repossession help
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Britons may be at increasing risk of debt and other financial difficulties because of hikes in oil prices, it has been claimed. [more...]

KPMG: Many are still experiencing serious financial trouble
Many people in Britain are experiencing financial difficulties, in spite of the fact that interest rates have reached record lows. [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:-

Will I have to close my bank account ? Can I keep my car while on an IVA? Can anyone with debts apply for an IVA? I understand that the IVA company take their fees from monies paid into the IVA. But who pays the fees for of the setting up the IVA in the case of its rejection ? What is the minimum number of creditors required for an IVA ? What if I unexpectedly come into some money during the IVA ? What if I fail to keep up the agreement ? What happens at the end of the agreement ? Who can I speak to if I wish to complain ? Does the Insolvency Practitioner (i.e. ourselves) represent the Creditor or the Debtor ?

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