Wednesday 22nd of July 2009
Borrowers who are considering whether to pay off their debt through an individual voluntary arrangement (IVA) or bankruptcy should seek professional help, it has been advised.
Only a financial professional can decide whether IVA support or bankruptcy is the preferred option, Martyn Shaw, writing on ecomparison, said.
Creditors are often more favourable towards allowing their debtors to obtain IVA help because it means they can receive more of their money back than they would do through bankruptcy.
He noted that IVA support can also allow Britons in debt to sort out their finances at a pace which better suits their circumstances.
Mr Shaw added that "an IVA gives them that time they need to get back on their feet by reducing their several debts into one manageable monthly payment".
The Independent recently reported that IVA help is being approved for an increasing number of Britons as creditors lower the required payment thresholds.
By Rachel Powell
- 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
- Debt problems 'prompting increase in complaints'
