One Advice | Bankruptcy, IVA & Debt News

An IVA is a legally binding procedure between the debtor and their creditors. If you are considering an IVA, it is important that you are aware of both the IVA advantages and IVA disadvantages.

If you are considering your options, ensure that you get expert debt advice from our specialist IVA advisors on 0800 048 1752.

IVA Advantages

• An IVA can write off unsecured debts that you cannot afford.
• Interest or charges frozen.
• You will not have to sell any major assets, such as your home.
• 60 months until you are debt free.
• One monthly payment based on your finances.
• Pressure from your secured creditors may be alleviated, as you won’t be paying as much on your unsecured debt.
• An IVA is a legal private agreement between you and your creditors and, unlike bankruptcy, your details will NOT be published in your local newspaper (although they will be available online).
• An IVA is legally binding, so your creditors cannot pursue you once the IVA has been accepted.

IVA Disadvantages:

• You must have unsecured debts greater than £12,000.
• Missing payments means that creditors can take legal action against you, such as a bankruptcy.
• It is a five year repayment plan.
• At least 75% of your creditors who vote, must agree to the IVA proposal.
• You may be asked to re-mortgage your home to release a proportion of your equity.

If you are struggling with debt and you are looking for a debt solution then an IVA could be your key to becoming debt free. It was introduced as a way for those struggling with their debts to avoid bankruptcy.

No other debt solution can write off any part your debt.

An IVA Can Help You Become Debt Free:

An IVA is a legal agreement with your creditors where you agree to pay a monthly amount over a set period of time, usually 60 months. On successful completion of your IVA, any unpaid debt is written off as part of the IVA agreement and you will become free of any unsecured debt.

The perks of an IVA may sound too good to be true if you are looking for a way to become debt free. But if you qualify then it is an avenue well worth exploring and you have the legal right to propose an IVA to your creditors.

Your IVA can only be arranged by a licensed professional called an Insolvency Practitioner (I.P) as it is a complex legal procedure.

To find out more information about how a debt free IVA is right for your financial circumstances, please contact us today for free debt advice on freephone 0800 048 1752.

If you are feeling stressed because of the amount of debt that you owe then you might think that it is impossible for you to become debt free – But we can help. One Advice are able to offer a number of debt solutions to suit your circumstances so you can look forward to a debt free future.

If you want to become debt free then it might be worth looking at the amount of unsecured debt that your owe. Unsecured debt is lent without being secured against any of your assets, therefore it is usually at a much higher interest rate. Unsecured debt includes:

• Personal Loans
• Credit Cards
• Store Cards
• Overdrafts
• Catalogue Debts

If you are finding these payments a monthly struggle and your outgoings are starting to match your incomings, then you need expert debt advice.

Debt Free Solutions:

We have a team of expert advisors who can go through your finances to help you find your best solution to becoming debt free. There are many ways that you could begin your debt free path, for example:

Become Debt Free with a Debt Management Plan.
You can consolidate your debt with a Debt Management Plan where we can arrange one low monthly payment to your debt which is designed to relieve any financial burden.

Become Debt Free with an IVA.
If your unsecured debt level is over £15,000 then you might want to consider an IVA, which is Government introduced legislation designed to write off any debt that you can’t afford.

Please remember that our professional debt advisors are on hand to offer you free debt help and advice on how you can become free of debt, call us today on freephone 0800 048 1752.

An IVA (Individual Voluntary Arrangement) could be your best solution to becoming debt free. If you can answer yes to the following questions then you may be eligible for an IVA:

• Have you got over £15,000 worth of unsecured debts?
• Do you have three or more creditors?
• Are you unable to keep up any minimum payments?
• Are you so financially stretched that you are considering bankruptcy?

Avoid Bankruptcy and Become Debt Free with an IVA

An IVA can help you avoid bankruptcy, as the IVA scheme was brought in by Government Legislation for this purpose. It provides those struggling with unmanageable debts with a viable and less severe alternative to bankruptcy. If you qualify then you have the legal right to propose an IVA, which is subject to the consent of your creditors.
No other solution, except bankruptcy, can write off part of your debt.

IVAs are legally binding to your creditors, meaning that as long as you maintain your monthly payments then they cannot take any legal action against you. However, as an IVA is legally binding on both parties, then you must make sure you are able to afford the monthly payments.

IVA Benefits

• One low monthly payment that you can afford.
• Write off a substantial proportion of your unaffordable debt.
• Be debt free in 60 months.
• All Interest and charges stopped.
• Your home and personal assets are protected.
• No more worry about creditor calls or letters.

As an IVA is a complex legal procedure, it can only be arranged by a licensed Insolvency Practitioner, who will put forward your proposal to your creditors.

If you want to hear more about the IVA process and how it can work for you, please call our expert IVA advisors on 0800 048 1752.

Not sure what debt solution is right for you? Take the 1 Minute Debt Test now…

If you are looking for a way to be debt free then you might be interested to know that there is government backed legislation which can help you become debt free in as little as 60 months. This is known as an Individual Voluntary Arrangement (IVA) and is designed to offer a more practical alternative to bankruptcy.

IVAs form part of the Insolvency Act of 1986, and is intended as a form of Government help for those who have high levels of debt and can no longer afford to make repayments to their unsecured creditors andt wish to avoid bankruptcy.

If you are suitable for an IVA then it is often the most ideal debt solution for your circumstances. This is because it offers you the chance to make realistic payments to pay back some of your debt, but you only pay what you can afford. Your monthly payments are based on your financial circumstances and any remaining debt is legally written off on successful completion of the IVA.

Your IVA proposal will be put together by a licensed Insolvency Practitioner (I.P). They will negotiate with your creditors to reduce the amount of debt that needs to be repaid. An IVA is only accepted when 75% of creditors (in terms of debt value) agree to the proposal.

If you find that you are struggling with overwhelming levels of unsecured debt and do not want to file for bankruptcy, then an IVA can offer you a realistic alternative. This debt solution helps you to write off a proportion of your unaffordable debt. You make reduced payments to your creditors for set period and any unpaid debt is automatically written off, typically leaving you debt free in 60 months!

IVAs are a complex legal procedure, you need to ensure you seek IVA advice to see if you fit the IVA criteria and then we can begin the IVA process. Call free today on 0800 048 1752.

Not everyone qualifies for an IVA, and the basic IVA criteria are as follows:

• Unsecured debt over £15,000.
• 3 or more creditors.
• You can afford to make monthly payments of at least £200.

If your debt is under £15,000 then you might want to consider our debt management plans which are an informal alternative to an IVA. With a debt management plan, we can negotiate a lower monthly payment to your debt but no amount of your debt can be written off. However, creditors are sometimes willing to freeze any additional interest or charges.

An IVA is a formal agreement between you and your unsecured creditors, and we will help you come to an affordable monthly payment which you can realistically afford. You commit to making this payment for an average of 60 months then any remaining debt is written off.

There are many benefits of an IVA, including:

• Unaffordable debt will be written off.
• One monthly payment, no matter how many creditors.
• Only pay what you can afford.
• Assets are protected.
• Protected from further legal action by your creditors.
• Your creditors are bound by the term of the IVA.
• Avoid stigma of bankruptcy.
• Easier to manage your secured debt as you have reduced your outgoings.

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.