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Clear your credit card debt with an IVA

There are a number of options available to someone who is struggling to pay their day-to-day bills such as their credit cards or loan repayments. This article will cover the option of an Individual Voluntary Arrangement (IVA) and how it can help someone who is struggling with debt.

What is an IVA?

An IVA is a legally binding agreement between an individual (the person who is in debt) and their creditors (the people they owe money to) in order to pay back the debt over an agreed period of time.

The amount that is repaid and the length of time it is repaid over will need to be agreed by creditors and will need to be a realistic offering for both the person who is in debt and the creditors in order for the arrangement to be agreed to.

Why choose an IVA?

Avoids Bankruptcy
There are many advantages as to why an IVA will be right for a person in debt. The most obvious one being that they will avoid Bankruptcy which has as much negative connotations in the name as the actual process.

It must be noted that if an IVA is unsuccessful then Bankruptcy may be the only alternative.

Keep the family home
A big plus to an IVA process if you are a home owner is that as long as you have enough income to make the monthly payments of the arrangement you should be able to keep and protect your family home.
However if there is substantial equity within the home this may be requested to be released into the IVA to help pay back as much of the debt as possible.

Interest is frozen
Interest and charges on all debts included in the arrangement will be frozen. This will mean that the debt amount will be frozen in order to help pay off as much as possible without accruing further debt.

Is an IVA right for me?

An IVA will be suitable for someone who has a large amount of personal debt (typically over £10,000) and who has enough surplus income to keep up with monthly payments over a certain period of time (typically 5 years).

The total amount of the debt you will pay back within the IVA will depend on the pence in the £ offer you make in the proposal to creditors. This offer will both need to be realistic for the individual to keep up the monthly payments, but also satisfying enough for the creditors to accept the offer.

Where to get the right advice

Whether you are suitable for an IVA or not will only be decided upon once you have taken the appropriate advice. There are many free citizen advice helplines available such as:

We Can Help You

Here at F A Simms & Partners we provide free confidential advice line that is answered directly by one of our Insolvency Practitioners. We also provide free initial meetings in order to discuss all the options available and really assess as to whether or not an IVA is the best solution for your problem.
Call us on: 01455 555423 or email: enquiries@fasimms.com to speak to one of our Insolvency Practitioners today.

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