One Advice | Bankruptcy, IVA & Debt News

Often, when coming across a range of debt solutions, you may come across the benefit that they can all consolidate your debt. But what does debt consolidation really mean and what is the difference between consolidation loan, debt management and IVA?

People often believe that debt consolidation can only come in the form of a loan and only a debt consolidation loan can be used to consolidate your debts into one lower monthly payment. But this is not always the case, as ‘debt consolidation’ also refers to any type of consolidation which allows you to combine your monthly unsecured debt repayments into one lower payment. This should make it easier for you to manage your debts as you only have to make one payment per month instead of separate payments to different creditors.

So, when deciding upon a debt solution it is important that you fully understand the difference between a debt consolidation loan, debt management plan and an IVA. The following gives you a brief overview of these differences, but for personalised debt advice about which of these solutions is right for you, call One Advice now on 0800 048 1752.

Debt Consolidation Loan – A Debt Consolidation Loan is a new loan which is taken out in order to pay off existing debts.  Many people opt for a debt consolidation loan as they find it makes managing their unsecured debts much simpler and easier to manage.
A key advantage of a Debt Consolidation Loan is that you can often benefit from a reduced monthly payments but it is likely that you will be repaying these debts over a longer period of time. It is important to note that a Debt Consolidation Loan is often secured against your home, so never agree to a loan if you feel as though you will fall behind on your debt repayments as you could lose your home to repossession. Always seek expert advice about a Debt Consolidation Loan before you agree.

Remember that not every debt consolidation option means that you take out a new loan:

Debt Management Plan – A Debt Management Plan is an informal, flexible debt solution which allows you to make lower payments towards your unsecured debts. Your monthly payment will be based on only what is affordable to you after your income and expenditure has been taken into account. Therefore you will still be able to keep a  standard of living and make a lower monthly payment to us which we will distribute between your creditors.
It is worth noting that a debt management plan offers no amount of debt write off so you  will continue to make payments to the plan  until your debts are paid off in full.

Individual Voluntary Arrangement (IVA) – An IVA is a legally binding agreement between you and your creditors, where you agree to make a single reduced payment to your unsecured creditors over a typical 60 month period, after which any unpaid debt will be written off.
Like a Debt Management Plan, you will be making payments which are affordable to you after your outgoings have been considered.

This is just an overview of the difference between consolidation loan, debt management and IVA, and we would always recommend that you seek professional information before deciding upon any type of debt solution.

Understanding the different debt solutions from a debt management company can be confusing. There can be a number of debt solutions on offer but it is essential that you fully understand the benefits which each debt solution can give you and what the advantages there are over alternate debt solutions.

The different debt solutions are specifically designed to help people with different kinds of debt problems, and the debt solutions you may come across include a Debt Management Plan, IVA, Debt Consolidation Loan or Trust Deed.

The advantage of there being a number of debt solutions means that it is likely that there is one to suit you, the downside can sometimes be knowing which one is the right one! This is where a Debt Management Company can help, they will take an holistic overview of your finances, take into account your incomings, outgoings and level of debt. From this information they will help you decide which debt solution can sort out your debt problems as quickly as possible.

One Advice can offer you a selection of different debt solutions but we would never over-complicate the situation for you. We will make the process as simple as possible  and, if you take one of our Debt Management Plans or IVAs, we will deal with your creditors on your behalf so you don’t have to worry about a thing!

If you wish to find out more about the different debt solutions from a debt management company, take the One Advice 1 Minute Debt Test to see what debt solutions options you have…

Recent research has suggested that the number of people considering an IVA (Individual Voluntary Arrangement) may increase due to the credit crunch, as more and more people are unable to manage their debt.

Lenders are getting increasingly restrictive about their lending criteria, which means that debtors are trying to find alternative methods to regain control over their finances. An IVA means that your debt can be repaid in an average period of 60 months and it is often a much better alternative than bankruptcy and with fewer implications.

The Royal Institution of Chartered Surveyors has recently showed that there will be around 120 repossessions every day this year. For those vulnerable people, there could be ways out of debt, and the key message is to act now, and don’t put off dealing with your finances.

One Advice are debt advice specialists and we arrange a number of debt solutions, such as IVA or debt management plans. We believe in offering our customers ethical advice, for free information please call 0800 048 1752.

Are you struggling with your unsecured debt? An IVA (Individual Voluntary Arrangement) might be just what you need to solve your debt problems and allow you to become debt free in as little as 60 months.

If you are struggling with debt you are not alone, maybe people have fallen victim to the credit crunch and may have lost their jobs or had essential overtimes hours reduced or cut altogether. There are many reasons why you may come across financial difficulty, and if you are facing a mountain of unaffordable debt, don’t panic as One Advice can help.

There are a number of ways that you can deal with debt and if you have unsecured debts over £12,000 you could solve debt problems with IVA and avoid bankruptcy. An IVA helps you avoid some of the long-term restrictions of bankruptcy and protects your assets meaning that you shouldn’t have to sell your home.

An IVA requires you to enter into a legally binding contract with your unsecured creditors with the aim to help you  clear your debts and become debt free, usually over a typical period of 60 months. On successful completion of your IVA, any unpaid debt can be written off.

An IVA arrangement is not suitable for everyone with unsecured debts, therefore there is some criteria that you will need to fit:

• You must have at least £12,000 of unsecured debt
• You must be able to commit to make a set payment for the full term of the IVA
• You have three or more unsecured creditors

This offers just the basic IVA criteria and the only way to know if an IVA is right for you is to speak to our professional IVA advisor, call One Advice now on 0800 048 1752.

Always remember that you must be fully committed to your IVA, as although it allows you to avoid bankruptcy you must commit to making the agreed payments otherwise your creditors could declare you bankrupt.

If you find it a struggle to meet minimum debt repayments and your unsecured debt level if over £12,000, you may be considering an IVA as your possible debt solution. An IVA (Individual Voluntary Arrangement) is a formal agreement between you and your unsecured creditors where you repay as much of your unsecured debt as you can afford over a typical period of 60 months and, on completion of your IVA, your creditors will clear debt which has not been paid.

Can I Clear my Debt with an IVA?

Struggling to make your debt repayments is a worry for many people who find themselves in this situation, and dealing with multiple unsecured debts, such as store cards, credit cards or personal loans, can be very difficult to manage if you find yourself slipping behind with these repayments. If this is you, you may be considering your debt solution options, and an IVA is one of these which allows you to clear a proportion of your debt.

Your IVA proposal allows you to make agreed payments towards your debt over a set period of time. IVAs have helped many of those who were struggling with debt and thought that being debt free was just an impossible dream. An IVA is a big commitment as you agree to an amount that you can afford to pay towards your debt and you must continue to make these payments until the end of your IVA agreement or else your creditors could start bankruptcy proceedings against you.

For the IVA to be agreed, 75% (by debt value) of your creditors must approve the terms of your IVA proposal. If this happens, your other creditors will also be bound by the terms even if they voted against the IVA. Once the IVA has been approved and is in place, it is a legally-binding agreement meaning that your creditors won’t be able to take further action to reclaim these debts as long as you keep up with your IVA payment commitments.

What Debt Can I Clear with an IVA?

An IVA does not include all of your debts. It can only cover non-priority debts including your credit card debt, store card debt, overdraft debt, catalogue debt etc. You can not clear any priority debt with an IVA, such as your mortgage or secured loan. However, an IVA will indirectly help make these more affordable to you since these outgoings would be taken into account.

To see if you can clear debt with an IVA or for debt advice about our range debt solutions,  take the 1 Minute Debt Test now or call today on 0800 048 1752.

The Government have recently announced that the number of people who can no longer afford to pay back their debts (meaning they are insolvent) is increasing, with over 100,000 people being declared bankrupt or opting for an IVA in 2007.

According to The Insolvency Service, this figure is hitting record levels especially in comparison to the figure in 2005, where less than 70,000 declared insolvency. These problems have stemmed from the worldwide credit crunch and the increased price of living, with these figures set to go even higher in 2008.

Help for Those Facing Bankruptcy

IVA’s (Individual Voluntary Arrangement) are a Government introduced alternative to bankruptcy, and you should consider exploring this route first. One Advice can offer you free advice and information on IVA’s and, if you qualify, you could write off a large proportion of your debt and avoid some of the implications of bankruptcy, such as selling your home.

Bankruptcy is an extreme debt solution and should only ever be seen as a debt solution in the last resort, there are a number of alternative debt solutions which you may want to consider. The reason why bankruptcy is not a quick-fix to your debt is because the short-term and long-term consequences of declaring bankruptcy can be serious, as they can affect your ability to keep your home or earn a living through your own business.

But don’t if you feel as though bankruptcy is daunting possibility don’t panic, as there could be be possible alternate avenues which allow you to avoid bankruptcy and become debt free:

1: Understand your finances. Perhaps one of the reasons why you are struggling with your debts is because you do not have a firm grip on your finances. Therefore ensure that you find the time to review your current finances. Make sure that you take into consideration both your incomings and outgoings.

Understand what your priority debts are, which are those payments that you must not miss at any cost or else you could face severe consequences, and these include items such as your mortgage/rent or household utility bills.

Work out where your excess spending is going, such as take aways or early-morning coffee habit, and cut out these non-essential outgoings and put any extra cash towards repaying your debts.

2: Debt Management Plan as a Debt Solution. Bankruptcy is not the only debt solution available and, in many cases, you will find that you can avoid bankruptcy with an alternate debt solution. We can devise a debt management plan for you where you make a smaller monthly payment to us and we will make the payments on your behalf to your unsecured creditors. We will take into account all of your essential outgoings, such as household builds and food shopping, and ensure that you can afford these and still make a reduced payment to your creditors from the remaining money.

3: IVA as a Debt solution. An Individual Voluntary Arrangements (IVA) is a bankruptcy alternative which you may wish to consider if you are a homeowner with over £12,000 worth of unsecured debt. An IVA is a formal arrangement between you and your creditors where you agree to make a reduced monthly payment to your debt for a typical period of 60 months. Unlike bankruptcy, your home should be protected during the IVA although you may have to release some of the equity.

Hopefully you should now realise that bankruptcy is not the only solution when you are struggling with unsecured debt, and One Advice are here to help. We have helped many of our clients avoid bankruptcy with one of our debt solutions. Fill out the Quick Enquiry form on the right of this article for an immediate call back.

Deciding upon the right debt solution is never easy, and you may ask yourself if an IVA is a good bankruptcy alternative or whether you should think about any alternative debt solutions. Even if your debt is unmanageable, bankruptcy does not need to be the answer as there are many long term consequences which cannot be avoided.

Before deciding upon any debt solution you should seek expert advice. One Advice have an expert team who can help guide you to the right situation based on your own set of unique circumstances. This could be an IVA, Debt Management Plan, Bankruptcy or another debt solution. The right debt solution cannot be determined until you have spoken to the experts, so call One Advice now on freephone 0800 048 1752.

Is an IVA right for me?

Individual Voluntary Arrangement is short for IVA and is a legally binding agreement with your unsecured creditors. It was introduced as a viable bankruptcy alternative where you agree to repay a percentage of your unsecured debts, and write off any remaining amount which hasn’t been paid on completion of your IVA.

As part of the IVA you must commit to making regular monthly payments towards your debts, over a typical 60 month period. Once you have successfully completed the IVA, any remaining unsecured debt will be written off meaning that you are debt free.

It is important to note that not everyone qualifies for an IVA and the best way to discover if you do is to get expert IVA advice. As a guideline you will need to have unsecured debt over £12,000 which you owe to three or more creditors with a reasonable disposable income. However, it is down to your creditors to decide whether or not to accept your IVA proposal and 75% (in terms of debt value) must agree to the IVA proposal before it can go ahead.

Is an IVA a Good Alternative to Bankruptcy?

The right debt solution for you will be dependant on a number of different factors. And the best way you can discover  if an IVA is a good alternative to bankruptcy for you personally is to get IVA advice. Typically IVAs are often considered a preferable  bankruptcy alternative, but this is not the case for everyone as you may find that you are not eligible for an IVA (although if this is the case there are other debt solution avenues which you may wish to explore, such as a debt management plan).

IVAs do have a number of advantages over bankruptcy, one of the major ones being is that an IVA is unlikely to lead to the repossession of your assets (including your home or car), as long as you stick to the terms of your IVA. It is worth noting that, with an IVA, you may still be required to release some of the equity in your home in the final year of the IVA.

For personalised debt advice and to discover is an IVA is the right bankruptcy alternative for you,call one of our IVA or Bankruptcy specialists on 0800 048 1758 or fill out the Quick Enquiry form for a callback.

Being debt free is the ultimate goal for many people and it doesn’t have to be an impossible dream. With the right debt solution you can make your debts more affordable to you on a monthly basis, meaning that you can keep to the agreed repayment and begin to pay your debts off and become debt free.

There are a number of debt solutions to get you debt free and the one which is right for you will be dependant on your personal situation. Each of our debt solutions is designed to help you manage your debts appropriately and we will make this process as simple as possible.

The best way that we can discover which of our debt solutions to get you debt free is the most appropriate, it is essential that you get expert debt advice. We have a team of leading debt advisors who will take details of your income, expenditure and help you decide which of our debt solutions is the perfect one to put you on the track to becoming debt free.

Debt solutions offered by One Advice include:

Debt Management Plans: One of the most popular debt solutions to get you debt free is a debt management plan. This informal agreement between you and your unsecured creditors which allows you to repay what is affordable to you on a monthly basis.
Your monthly payment will be based on what is affordable to you after all your expenses have been taken into account. This means that you will be left with enough money to pay for your essential expenditure, such as mortgage/rent, utility bills, food shopping etc. Repaying your debt at a slower rate means it will take you longer to become debt free and your creditors may not agree to freeze your interest and charges.

Individual Voluntary Arrangement (IVA): An IVA is a debt solution to get you debt free in as little as 60 months. It is an agreement between you and your unsecured creditors which is legally binding and you commit to repaying as much of the unsecured debt that is affordable over the IVA period. Once you have successfully completed the IVA the rest of your debt will be written off.
This type of debt solution is only suitable for those with debts of at least £12,000 and you must always be sure that you get professional IVA advice to ensure it is the right debt solution for you.

Trust Deeds: An IVA is only available to those who live in England, Wales and Northern Ireland. If you are a resident of Scotland a Trust Deed is your IVA alternative. Like an IVA you only pay the debt that is affordable to you and unaffordable debt will be written off, but the typical Trust Deed term is 36 months.

These are just some of the solutions to get you debt free. For personalised debt advice please speak to One Advice directly or take the 1 Minute Debt Test to see your debt solution options.

When you are looking at your debt solutions, you may wish to understand the difference between IVA and Debt Management. Each of these are potential a debt solution for those struggling with repayments but it is important that you are aware of the difference between IVA and Debt Management, and which of these two options would be a better debt solution for you:

Debt level: An IVA is typically only suitable for larger levels of unsecured debts of £12,000 or more. Debt Management is more suitable for those with smaller debt levels.

Type of agreement: An IVA is a legally binding agreement between you and your creditors and, once the IVA has been agreed, you are both bound by it. Failure to keep to the terms of an IVA may mean that your creditors can declare you bankrupt.

On the other hand, Debt Management is a much more informal agreement and the terms of your plan can be more flexible if your circumstances change.

Length of agreement: An IVA is typically a 60 month repayment plan where you pay what is affordable over the agreed period of time and any unpaid debt will be written off on completion of the agreement. Debt Management offers no debt write-off and you must repay your debts in full.

Debt Write Off: As mentioned above, an IVA will write off the debt that is unaffordable to you on completion of the agreement. This is the main difference between IVA and Debt Management, as with Debt Management all of your debt will be repaid to your creditors.

Debt Management Plans and IVAs are not the only debt solutions available, and the right one for you will be dependant on your situation. For further information from one of our expert debt advisors, call now on 0800 048 1752.

If you are dealing with your debts, you may be torn between two possible debt solutions: IVA or Bankruptcy. But how are you supposed to know which one of these debt solutions is right for you? What makes you suitable for an IVA or Bankruptcy (or an entirely different debt solution!) is dependant on your personal financial situation and could also be down to personal preference.

The best way to fully understand the differences between IVA or bankruptcy is to be sure that you get professional financial advice. One Advice can offer both of these debt solutions as well as their alternatives. With the advice of our expert debt advisors you can be sure to fully understand both the benefits and considerations of these two debt solutions, so call One Advice direct today on 0800 048 1752.

What are the differences between IVA and Bankruptcy?

Bankruptcy should always be seen as an extreme debt solution which should only be considered after all other debt solutions have been fully explored. If you declare bankruptcy, or are declared bankrupt by your creditors, you will lose control of your finances. If you are a homeowner you will more than likely lose your home.

An IVA is a repayment plan where you formally commit to making set repayments to your unsecured creditors over an average period of 60 months. Once you have successfully completed the IVA any unpaid debt will be written off, meaning that you are debt free. Your IVA payments will be based on what is affordable to you after essentials expenses, such as your mortgage, have been accounted for.

Is IVA or Bankruptcy the right debt solution for me?

The right debt solution for you is dependant on a number of different factors. Before deciding on IVA or Bankruptcy as your preferred debt solution it is essentials that you understand both the short-term and long-term consequences of both debt solutions.

Bankruptcy is more of a public declaration of insolvency as details about your bankruptcy will be published in your local newspaper. An IVA is more private although details are still available online through the insolvency register.

With bankruptcy you must hand over all financial control which means that your car or home could be sold in order to repay some of the debt to creditors. An IVA allows you much more control over your finances as you should still be allowed to keep your bank account and your home can be excluded from your IVA proposal (although you may have to release some of the equity in your home).

If your debts are less than £12,000 and you wish to avoid declaring bankruptcy, a debt management plan could be your preferred debt solution. You make reduced monthly payments to your creditors at a level which is affordable to you. So no matter what your financial circumstances One Advice can find a debt solution suitable for you.

You may have heard about IVAs (Individual Voluntary Arrangement) and how you could become debt free in as little as 60 months, but can you really write off debt with an IVA?

You may worry that having unaffordable debt means that bankruptcy is the only debt solution available to you, but this is not always the case. Many people find that they are eligible for an IVA which allows them to avoid bankruptcy and write off a percentage of their unaffordable debt.

How Can I Write Off Debt with an IVA?

An IVA allows you to repay as much of your unsecured debt as you can over a typical 60 month period, after which any unpaid debt can be written off. The payments which you need to make to your IVA are dependant on your own set of unique circumstances and will be at a level which is affordable to you.

An IVA offers  a percentage of debt relief and also allows you to avoid some of the disadvantages of bankruptcy. For example, an IVA should mean that you will not lose your home, although you may have to release some equity.

Remember, your financial circumstances are unique to you and the only way to discover if you are suitable for an IVA is to get professional IVA advice. One Advice have a dedicated IVA team who can see if an IVA is your best option or whether you are more suited to an alternate debt solution.

For immediate IVA advice, please get in touch by filling out the Enquiry Form to the right and we will give you a callback to discuss whether you will be able to write off debt with an IVA.

IVA is short for Individual Voluntary Arrangement. An IVA can be a successful debt management solution to those with debts over £12,000 who feel as though they cannot afford to repay their debt in full yet wish to avoid some of the long term implications attached to declaring bankruptcy, such as losing their home.

If you are struggling with unmanageable debt then it is essential that you get professional debt advice, as this expert guidance should be able to offer you more information about the debt solutions available and whether an IVA is the right debt management solution for you.

There are a few fundamental points which you need to understand about IVAs. First of all, they are only available for resident of England, Wales and Northern Ireland, so people based in any other country are automatically not eligible for one. If you are a resident of Scotland, your similar equivalent will be a Trust Deed which can offer you similar benefits to an IVA and One Advice can offer you more information about these.

An IVA is only suitable for those with debts over £12,000 over multiple creditors. These debts must also be unsecured, so many include debts such as credit cards, store cards, overdraft and catalogue debts. Secured debts, such as mortgage, cannot be included in your IVA but payment for these will be taken into consideration when working out how much you can afford to repay to your creditors through the IVA.

You must be able to commit to repaying a reasonable but affordable monthly payment to your creditors, therefore you will need to be employed in some capacity. It is essential that you keep up ton date with your IVA repayments or else your creditors can declare you bankrupt.

An IVA is a legally binding agreement which allows you to repay your creditors a lower monthly payment to your debt over a typical time duration of 60 months. The IVA means that you can resolve your debt problem by paying only what is affordable to you over the specified time-frame, and agreed by your creditors. On completion of the IVA you will become debt free.

It is essential that, if you believe an IVA is the right debt management solution for you, that you do your research. You need to fully understand what being on an IVA entails and that you are aware of all the potential benefits and considerations of the agreement.