Bankruptcy is a problem that is on the increase in the UK and with the looming recession many with large debts are looking for a resolution. Most will opt for an IVA as these are one of the most proficient ways to tackle debt.
There are obviously many different reasons for an individual to fall into debt but what is common with debt is the difficult that most have with removing themselves from it. Many find themselves irrevocably drawn into the sea of debt and often can’t see a viable means by which to extricate themselves from their monetary predicament. Fortunately, however, more and more are discovering a structured and efficient means of overcoming substantial debts in the form of an individual voluntary arrangement (IVA). The threat of bankruptcy shouldn’t be taken lightly as there are an alarming number of indebted individuals who are deciding to declare themselves bankrupt without actually fully considering the consequences of their actions. There are a veritable multitude of problems that should make declaring bankruptcy a last resort and those struggling with vast debts should speak to financial professionals to see if they qualify for an individual voluntary arrangement (IVA) because these don’t have the negative implications of bankruptcy.
IVA – Multiple Debts
Generally speaking, an individual voluntary arrangement (IVA) is best suited to those individual’s who have debts to numerous different creditors, typically over three. An IVA will help to structure these debts and make them considerably more economically viable whilst not impacting upon an individual’s capacity to make ends meet each month. It is one of the principle objectives of an IVA to ensure that repayments each month don’t impinge upon an individual’s financial situation to an untenable extent and the majority of individual voluntary arrangements (IVAs) will be completed in a timeframe of around 60 months. By making regular payments each month, it is slowly addressing your financial arrears and when an IVA is completed, the individual will legally declared debt free, which is crucial when it comes to securing one’s financial future.
IVA – Reducing Outstanding Arrears
An IVA can, in many circumstances, cut as much as 50-75% off an individual’s financial arrears and this is obviously extremely beneficial when it comes to paying off substantial debts. In order to qualify for an IVA, an individual will have to exhibit that they have the capacity to make the requisite payments each month but there are few better methods of addressing substantial monetary strife. Find IVA Advice from www.churchwoodfinance.