Thursday 25th of June 2009
An individual voluntary arrangement (IVA) is a superior alternative to bankruptcy, one woman who has benefited from the debt solution has suggested.
Ivy A, who writes for the Guardian’s Money Blog, revealed that she and her entrepreneur husband found themselves in serious money problems in 2006 and elected to seek IVA help instead of opting for bankruptcy because of the advantages it has.
"The IVA means that, although you have to make monthly repayments (in our case £815) for a period of five years, you get to keep your home," she remarked.
This "was infinitely preferable", the blogger said, after having to move houses numerous times due to her husband’s fluctuating income levels.
Ivy explained she now gets by financially through letting out the three spare rooms in her home to tenants and has been doing so for the last three years since entering into the IVA.
The government’s Insolvency Service warns that in order to avoid being petitioned for bankruptcy, those in IVAs must stick to their agreements and ensure that full details pertaining to debts and assets are disclosed.
- 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 answers to ease 'insolvency crisis'?
