An IVA (Individual
Voluntary Arrangement) is a form of consumer debt consolidation program
set up by the government of the day to try to eliminate personal debt
and to deal with the issue of individual insolvency.
The needs of one
person can be vastly different from the needs of another person or household.
Any consumer debt consolidation advice given must thus take into account
the uniqueness of the situation people find themselves in.
Normally an IVA
will be set to run for 60 months (sometimes less) and when this is complete
all the debts are cleared from a person's credit history. During this
time none of the banks are permitted to pursue or harass the debtor,
although this cannot be guaranteed.
An instrument such
as this will write off the larger part of your debt at the start of
the programme (although beware of the exaggerated claims made in some
advertising: it is seldom much more than 60 or 65% of total unsecured
debt which can be 'written off'). Any decent debt consolidation advice
will ensure you get the best results with the lowest repayments together
with the highest proportion of debt written off at the outset.
So fill in the form
for independent and impartial consumer debt consolidation advice which
is right for your own situation.
If you have at least
two accounts in debt, and total debts of £2,000 or more, use the
form below to see if you qualify. (If you owe less than this, or are
on state benefits, then use this
link to apply.)
be aware that figures entered need to be accurate by law, and to give
the best service to you. It is extremely important that you budget for
all necessary expenditure including rent or mortgage, council tax and
utility bills, etc., and any other necessary outgoings related to the
upkeep of your household and inrelation to any specific circumstances
that may relate to you. This website only collects data on behalf of
debt management professionals, from which it will receive affiliate
remuneration for data collection only and does not itself engage in
any debt management services. Other debt management options are available
and may be more suitable. People entering into an IVA or debt management
will have this entered on their credit profile and this may affect their
ability to get credit in the short term or even in the long term in
some cases. It is free to apply from this website; you will be given
advice by debt management professionals and a 'cooling off' period,
by law, to decide whether or not the debt management plan is suitable
for you, and you should be aware that a fee will be chargeable upon
a successful arrangement, as with any commercial transaction. Failure
to meet the repayments on an IVA or any debt management programme may
result in serious consequences, including, but not limited to, bankruptcy.
Bankruptcies, CCJs and similar defaults will be entered into a public
register and will remain there for a statutory period of not less than
six (6) years.
Credit Licence number 633327.
attempt to help people who suffer from insolvency in a number of ways.
There are recognised schemes like CVAs and IVAs to facilitate the methods
of both corporate and personal debt recovery and to try to palliate
what has always been a difficult procedure, and clearly consumer debt
consolidation is involved in this. The aim tends to be towards protecting
personal assets wherever possible and in safeguarding the property of
individuals by using statutory measures. This an arrangement applies
to individual assets as much as the assets of corporations.
A number of disciplines
have grown up surrounding the area of insolvent cases, and these include
the legal sector and more recent professions including such diverse
types as consultants. All such experts have their own strengths. Each
one will have their own area of expertise which you should make use
of to your advantage. Making use of consumer debt consolidation should
ensure that the turnaround from insolvency is much easier.
In order to qualify
for consumer debt consolidation the applicant must show proof of earnings
in excess of a certain minimum and have arrears of not less than a certain
amount and not more than a specified maxima, and such values will alter
from one insolvency firm to another. Usually income should be proved
to cover the calculated repayments after other bills have been met including
the mortgage and fuel bills. The usual minimum amount of personal debt
is around £2,000 although this may vary. A ceiling of £50,000
is given in a few cases, though by making use of a third party the applicant
may be directed to appropriate source of help to look after their own
Consumer debt consolidation
is a useful legal instrument and most people would jump at the chance
of entering into one because it is sanctioned by the law and releases
the client from the entire debt when the term has been completed. This
is a more benign resolution to an individual's debt problem than other
more punitive measures such as making the debtor bankrupt and it carries
An instrument of
consumer debt consolidation such as an IVA will be usually prepared
by a specialist and qualified insolvency practitioner and will be drafted
especially to cover the specific requirements. There is no such thing
as a typical attitude to these processes because every situation differs,
and some situations are vastly different. The insolvency practitioner
will then prepare the best features in accordance with the applicant's
own individual situation and then ratify a programme of repayments to
a central fund which is generally over 60 months, though in certain
situations this can change.
a look at the Insolvency Service's leaflet called 'In Debt',
website is property of Consumer Debt Consolidation. Copyright 2002
-Thereafter. All rights reserved.