Thursday 2nd of December 2010
The Duchess of York may decide to start asking individual voluntary arrangement (IVA) questions in order to clear the £2 million she owes to her creditors.
An article in the Daily Mail noted Fergie is still £1.5 million in the red, even though she recently received a £1.5 million bail-out from Prince Andrew.
In a bid to try and resolve her financial problems, she has taken the step of offering those people and firms that have lent her money 25 per cent of what they are owed.
If this is refused then the Duchess may decide to enter into an IVA, which will allow her to consolidate all of her existing debts and pay them back over a period of five years.
For the agreement to be successful all of the interested parties have to agree to the procedure, but while most have accepted the deal, two have declined, the news source stated.
Individuals finding themselves in a time of severe financial hardship may seek IVA answers, as - unlike bankruptcy - the terms of the arrangement are not required to be published in newspapers.
By Chris King
- 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
- Could now be the time for self-employed Brits to seek IVA answers?
