Thursday 20th of May 2010
Seeking individual voluntary arrangement (IVA) answers might be beneficial if you’re in the red and being given a hard time from your creditors.
If you’ve decided to do something about your unmanageable debts by embarking on a statutory insolvency procedure, there’s a chance you may still be contacted by lenders, according to new figures from R3.
IVAs, as opposed to bankruptcy, however, might reduce the risk of being hassled.
That’s because just 25 per cent of those in an IVA reported creditors getting in touch, compared to 44 per cent of people who have filed for bankruptcy, the statistics show.
There are number of other potential benefits of opting for this form of insolvency too.
IVAs protect the equity on your house, meaning may not have to sell it no matter how desperate your situation becomes, which is often the case with bankruptcy.
In addition, they don’t require details of your money woes to be published in the local paper, or obstruct your route into certain careers.
R3 president Steven Law comments: "[People] should be applauded for taking action to bring resolution to their finances and make a fresh start, not pressured by their creditors once they have acted to deal with their affairs."
By Chris King
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- 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 helps £38k-a-year teacher pay back debt
