Monday 12th of April 2010
If you’re separating from your spouse but are worried about the effect your unsecured debts, divorce costs and loss of income will have on your bank balance, asking individual voluntary arrangement (IVA) questions could be beneficial.
IVAs give you the opportunity to cut down the money you owe on credit cards and personal loans over a period of five years, while they could also make repayments easier to meet by freezing interest rates on your debts.
And this might offer you a big helping hand if you think the combination of serious unsecured debts, high legal fees and losing your partner’s income has put your financial situation in jeopardy.
Because the divorce procedure can be a particularly expensive one, especially if you take the advice of Christina Tait, founder and manager of DivorceAid.co.uk.
"We advise on good legal representation, counselling and mediation for any problems," she says.
However, IVAs could ensure you’re able to get rid of amassed unsecured debts worth more than £15,000, which may then help you cover the cost of such much-needed legal assistance.
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
- IVAs could have you debt-free in 5 years
