Friday 25th of September 2009
Individual voluntary arrangements (IVAs) have many advantages including the support of a financial specialist who can advise Britons on how much debt to pay back every month.
According to Money High Street, IVAs have a number of benefits which people may want to consider, especially if they are keen to avoid the route of bankruptcy.
The website reassures cash-concerned consumers that IVAs are not advertised, so unless a person in severe debt decides to tell their family and friends that they are clearing their credit with an IVA, others will not be aware.
Indeed, when a bankruptcy is made, it is often reported in the local newspaper and people will have to attend a court hearing, two consequences which many households would probably be keen to avoid.
"You don’t have to let your employers know and unlike with bankruptcy you can continue to work in such [areas] as the armed forces and selected professions, such as an accountant or solicitor," explains the online resource.
IVAs can bridge a gap between lenders and borrowers, although the Mirror recently advised people to speak to their creditor about reducing repayments, before resorting to debt solutions such as IVAs.
However, for large debts, an IVA may be one of the only ways to reassure a creditor that they will be paid.
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
- IVA advice might focus on credit card debt
