Are Your Debts Spiralling Out Of Control?
Being in debt can take its toll, causing stress and worry, sleep problems and even lead to depression. However, new legislation means there is now real help out there for people worried about debt.
If your debts have become unmanageable, a government scheme could help you write off some of the debt and repay all your creditors in a single affordable monthly payment over a period of five to six years, which means you stop worrying about debt and start enjoying life again.
How To Fix Your Debt Issues today
The perfect solution to your problems could be an Individual Voluntary Arrangement or IVA. Basically, this is an informal arrangement between you and your debtors that allows you to pay accumulated debts, such as credit/store cards, loans, overdrafts and even overdue bills, over a longer period of time at a monthly rate you can actually afford.
You pay no interest and may even be able to write off some of the debt.
To benefit from this scheme:
* You will need help to set an IVA up from an expert known as an Insolvency Practitioner. You can find the best one for your needs through a website such as IVA Debt Relief. These are qualified professionals who will make sure you get a repayment plan you can afford and that suits your needs best.
* You will have to pay a fee for the services of an insolvency practitioner (around £5000), but it could save much more in the long run, both in terms of cash and stress. It’s also good to know that your practitioner is there to deal with any issues throughout the term of your IVA. Debt management companies also provide this service, but they may be much more expensive than a dedicated practitioner due to additional fees. That’s why it’s a good idea to discover the best priced practitioner for your needs through an intermediary such as IVA Debt Relief.
* Once you’ve seen a practitioner and agreed a total repayment sum to your creditors, a meeting of your creditors will be arranged to present the terms of your offer. 75% of your creditors will have to agree for the IVA to go ahead. The creditors may agree subject to modifications to the agreement. If this happens, you have up to 14 days to reconsider your offer. However, you can agree to the modifications on the day of the meeting, the IVA can be approved there and then.
* After that, you can either pay off your debts in a single lump sum, perhaps by releasing equity in your home, or make regular monthly instalments of either 60 or 72 monthly payments to your practitioner, who will distribute the money to creditors.
Eligibility & Other Valuable Information
IVAs are a form of insolvency, a ‘soft’ bankruptcy if you like, but there is no requirement to sell your home, although you may need to release equity in your property to make payments into the IVA. If this isn’t possible, you can increase the length of your IVA from 60 to 72 months.
To be eligible for an IVA agreement:
* You must be able to demonstrate that you can’t pay off debts (at least £5,000) over a reasonable period of time and your debts are of a higher value than your assets. Court fines, maintenance arrears and student loans cannot be included in an IVA.
* You also need to have enough spare income left (usually at least £100) after living costs are taken into account to afford the monthly payments.
Once an IVA has been approved, it will appear on your credit file for the term of the agreement, and you’ll only be allowed to take out up to £500 worth of credit during this time (you’ll need approval from your IVA supervisor in order to do this).
Getting the most from an IVA means getting the right insolvency practitioner for your financial circumstances and IVA Debt Help is authorised under the Financial Conduct Authority to provide the expert debt advice to do just that.