Wednesday 21st of October 2009
The former England and Liverpool footballer John Barnes has been declared bankrupt - a situation that an individual voluntary arrangement (IVA) can help to avoid.
Mr Barnes was declared bankrupt by an insolvency court in Liverpool last week.
Last year he is reported to have said he "didn’t have any money to invest" after it was suggested he should use the services of a financial adviser.
He was sacked as manager of Tranmere Rovers just days before the court hearing.
Bankruptcy is a solution for some people whose financial position has become untenable - a way of clearing debts and starting again.
But an IVA could be a more attractive method of reaching financial security.
IVAs can tackle unsecured debt of more than £15,000 by freezing interest rates and creating a fixed repayment schedule.
Such reorganisation of these debts can have a knock-on effect and make regular outgoings on secured debts such as mortgage repayments easier to find.
By Mark Waterman
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- Could an IVA bring calm to your financial life?
