An IVA is a debt
relief plan set up to provide a solution to personal debt and deal generally
with the growing issue of individual insolvency. Our clients are licenced
to give debt consolidation advice on the basis that IVAs were not designed
to be one-size-fits-all remedies to any financial problem, because each
individual situation is so different.
The needs of one
household or one individual can vary greatly from the needs of another.
Any debt consolidation advice given must thus reflect the diverse nature
of the situation in which people find themselves.
Generally an Individual
Voluntary Arrangement will be set to run for sixty months (sometimes
less) and when this has finished all debts are cleared from the credit
profile. During this time none of the creditors are allowed to pursue
or harass the debtor. The IVA has all the benefits of bankruptcy while
having none of the drawbacks.
An instrument such
as this will write off most of your debt at the beginning of the plan
(although beware of the exaggerated claims made in some circles: it
is rarely more than 60 or 65 per cent of unsecured debt which can be
cancelled). Any good debt consolidation advice of this sort will make
sure you get the best results with the lowest monthly repayments together
with the highest proportion of debt write-off.
So complete the
application form for impartial debt consolidation advice
for your own personal circumstances.
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Debt Consolidation Advice
Governments generally
attempt to do their best to give some help to people who have suffered
from debt in a number of ways. There are recognised schemes like The
diverse individual and corporate voluntary arrangements to assist in
the methods of both personal and corporate insolvency and to try to
palliate what has always been a difficult time, and certainly debt consolidation
advice is an integral part of the solution. The aim is intended to be
towards safeguarding possessions where possible and also in safeguarding
the property of individuals using legal instruments. This applies to
both private property as much as the assets of businesses.
Debt consolidation
advice instruments such as an IVA will be typically written out by a
qualified insolvency practitioner and will be drafted especially to
match the specific requirements. There is no such thing as a one-size-fits-all
method to these procedures as all circumstances differ, while some differ
exceedingly. The selected insolvency practitioner will draft the optimum
features in accordance with the applicant's own particular situation
and then ratify a schedule of payments to creditors which is generally
over five years, though in certain situations this can differ.
The creditors are
barred from getting in touch with the applicant now the debt consolidation
advice programme has been started. Creditors are not allowed to pursue
the debt, and if they do so they will be committing an offence and will
be penalized, which may mean a fine or even taking away their trading
licence if they are a debt purchasing firm. The applicant has this guarantee
to protect against the phone calls and other intrusive means these companies
use to intimidate their victims.
A great benefit
of an arrangement of this kind is that it will immediately cut the debt
by a large proportion. Usually this is as high as 60 per cent, even
more sometimes. This huge reduction in debt burden makes a considerable
difference and is one of the many things which differentiates this from
a conventional management plan. Therefore anyone looking for help for
debt relief would be best advised to apply for this over a standard
debt relief programme.
Debt consolidation
advice in the form of an IVA or similar procedure is a device and most
would jump at the chance of applying for one of these because it is
sanctioned by the law and discharges the holder from the entire debt
when the term has been completed. It is a much more gentle response
to long-term debt than other more draconian measures such as bankruptcy
and carries none of bankruptcy's sting.
In order to be
suitable for debt consolidation advice options such as an IVA the applicant
must show proof of a nett income in excess of a certain minimum amount
and have liabilities of not less than a certain amount and not more
than a specified maxima, and such values may alter from one insolvency
firm to the next. Normally income must cover the repayments after other
bills have been paid such as mortgage payments and utility bills and
council tax, etc. The average minimum amount of debt is around £2,000
although this figure can vary. A top value of £50,000 is given
in a few cases, although by making use of a broker or intermediary the
applicant may be shown best source of help to deal with their own individual
circumstances.
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