Monday 28th of September 2009
An individual voluntary arrangement (IVA) is a solution that some of the 3.4 million Britons with severe debt problems may be unaware of.
Such people, making up some five per cent of the population, live with the constant fear of losing the family home and business, moneysupermarket.com has reported.
And to anyone of those who are forced into bankruptcy this fear becomes a harsh reality.
But there is a brighter alternative: an IVA.
IVAs generally last for five years with a set payment agreed between an individual and his/her creditors being made each month.
Price comparison site moneysupermarket.com advises worried debtors: "The main advantage of signing up to an IVA is an end to all calls and letters chasing payment from you."
As well as the manageable repayment structure, other key advantages of an IVA are that all remaining debt may be wiped out at the end of the fifth year and that your home could be safe.
IVAs can also be favourable to Britons worried that their money problems will become public knowledge as, unlike bankruptcy, details remain private.
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
- Equity release market "resilient"
