Wednesday 30th of December 2009
If you have a number of significant unsecured debts then your biggest fear could be that you lose your home, although repaying what you owe through an individual voluntary arrangement (IVA) could allow you to stay in your house.
Trying to pay the climbing interest on a variety of financial commitments such as credit and store cards and personal loans can be an extremely difficult task.
Lenders could lose their patience and take court action to have you declared bankrupt, with which comes the potential for you to lose your home.
But the government has revealed that thousands of families have avoided eviction under its Housing Possession Court Duty Schemes, which provide last-minute emergency help for individuals facing court.
According to the Ministry of Justice, last year an average 76 per cent of those helped by the schemes could immediately go back to their homes following repossession hearings.
Rather than let your debt get to the stage where last-minute government help is needed, you may find an IVA answers your repossession concerns.
Unlike bankruptcy, an IVA allows you to repay your lenders in more manageable chunks, which can reassure them you are paying back your debt to your best ability.
By Neil Burton
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA help could support Britons who are not on top of their finances
