Wednesday 6th of January 2010
If you are currently going through a divorce, you may be worried about how you are going to pay unsecured debts you accumulated in your own name when you had two incomes coming into a household, although having your questions on individual voluntary arrangements (IVAs) answered could allay these fears.
According to Unbiased.co.uk, almost half of solicitors saw a delay in reaching a divorce settlement in 2009 as individuals held back on finalising financial agreements.
This could include who is responsible for paying back personal loan repayments and store and credit cards.
If you do find yourself left with debts of more than £15,000, then an IVA is one option to repay what you owe.
An IVA will also allow you to remain in your family home with your children - if your ex-partner agrees to it - as long as you keep up with repayments.
"While the credit crunch has led to many people to put off major financial decisions, seeking professional advice as soon as possible is always the best step to get your financial affairs in order," asserts Karen Barrett, chief executive of Unbiased.co.uk.
One way could be to have your IVA questions answered by a specialist, who may reassure you if you have concerns about what an IVA will mean for you once you are divorced.
An IVA could stay on your credit file for around five years, but unlike bankruptcy, should not prevent you from remaining in certain employment roles such as in the financial services sector and at a directorship level.
This could be especially important if you have full custody of your children, or need to pay child support for a number of youngsters.
Concerns about money, assets and debts in the current economic climate meant that half of solicitors were approached by fewer divorce clients in 2009 than they would previously be contacted by, the website’s poll found.
One reason could have been worries about how to either split debt or pay it off completely.
By Rachel Powell
- 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
- IVAs could solve some of 9,300 daily debt cases
July 7th, 2010 at 4:26 am
Personal debt settlement definitly seems to be becoming as a potential option for consumers dealing with unsecured credit card debt. I have been following the market quite closely and it is very difficult to tell what is actually being purchased for your investment. I really know there are quite a few debt settlement providers out there that serve up fantastic debt solutions and the debt settlement customers truely get great benefit, but I also know there are a group of debt consolidation providers in the market that are only focused on collecting fees and enrolling new subscribers. No doubt this is why we see new regulation managing the debt consolidation industry. My sister in law used a debt consolidation service provider and seems to be very extremely satisfied with the overall results.