How To Make Your Debt Problems Disappear For Good

Make Your Debt Problems Disappear

Many people all over the world are struggling under ever increasing debt that doesn’t seem to go away no matter how hard they budget or how careful they are with their finances.

These debts include all different forms of credit from personal loans, to credit cards, store cards, catalogue debts, overdrafts, cash advances and other types of unsecured credit.

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What people don’t know is there is a particular debt solution which was made available to members of the British public as part of the ‘Insolvency Act 1986’, which is government supported and a powerful way to clear debts over a period of time, for good.

What Is This Debt Solution?

The debt solution described above is the IVA (Individual Voluntary Arrangement).

This is a formal debt solution between you and your creditors, which enables you to consolidate your monthly bills into a lower, more manageable monthly repayment over a period of(generally) 5 years, after such a time has passed, the debt is considered settled.

Debt solutions

This means that considerable amounts (up to 85% of the debt) is written off (this is due to the fact that any remaining debt still due after the end of the IVA is eliminated automatically), in addition to consolidating monthly bills and eliminating enormous amounts of debt, there are other benefits for people being chased by creditors.

What Other Benefits Does The IVA Offer People In Debt?

It can get your creditors and any debt collection agencies, bailiffs, enforcement agents and other nuisance third party collectors off your back because there is a legal injunction known as an ‘interim order’ as part of an IVA, which can be commissioned whilst the IVA is being set up.

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It can halt any court orders being placed by creditors or bailiffs and any county court judgements (CCJ’s).

It can help protect your assets, in contrast to bankruptcy, with an IVA you don’t need to sell your assets to repay your debts, so no sale of your home or your vehicles to repay creditors.

As mentioned above the majority of your debt can be eliminated on completion of the IVA.

Some of the more harsher effects of bankruptcy are avoided with an IVA, such as the negative impacts on your credit rating and the avoidance of other unpleasant financial side effects.

You’ll be able to have a bank account on an IVA whereas in bankruptcy it’s hard to have a bank account, making the IVA a popular way to avoid bankruptcy.

You also avoid much of the unpleasant social side effects of bankruptcy, such as the publicity (bankruptcy is advertised publicly once it is filed).

How Does The IVA Work?

The arrangement works via an initial debt assessment being carried out on the debtors’ personal circumstances, this is intended to establish whether or not the IVA is a viable choice for them before proceeding.

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Once the assessment is completed and the IVA is selected as the best solution moving forward, the IVA proposal is put forward to both the creditors and the courts for approval (75% of the creditors must agree to the new repayment scheme and the terms of the IVA before proceeding) once this is agreed the IVA can begin.

After the courts have signed the documents, the IVA comes into force, this means the following elements that are legally binding come into play:

  • New repayment plan for each and every debt (affordable repayments)
  • Protection from creditor pursuit for the length of the IVA
  • Appointed representative to deal with all debts on your behalf
  • No need to lose any personal possessions for sale to repay debt
  • Frozen interest and charges on any debts
  • After five years the remainder of any debt is wiped

The IVA is rich in benefits for people in debt but requires commitment, to find out more about IVA’s see this page for more information.

Guest post by James Outreach


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