Wednesday 12th of August 2009
By including the cost of IVA help in the part of an individual’s debt that is waived, the process can become effectively free for those who go through it, reports the Daily Mail.
"If an IVA runs its full five years, then the firm running it typically takes its fees from the amount paid to creditors," the publication explains.
This means the cost of the IVA help faced by the individual concerned is effectively zero.
Readers are told that an IVA could suit their needs if they have more than £15,000 of debt.
Homeowners may also welcome the news that, with an IVA, they are able to protect their property as well as clear their debts.
IVAs are legally binding and typically require a majority of an individual’s creditors to agree to the same terms.
Should the necessary number approve the plan, interest payments are frozen and a set amount of the debtor’s income is put towards monthly repayments until the full period of the IVA is reached.
By Kim Parsons
- 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
- Woman who spent thousands on clothes could have been helped by an IVA
