Is an IVA Right for Me?

On February 24, 2012, in News, by Lewis Alexander

Have you found yourself wondering “Is an IVA right for me?”

  • free credit report UK from ExperianIs an IVA right for me?
  • This is a question we get asked regularly by clients who are not sure which route would be the best for them to clear their personal debts.

Quite often people find it difficult to decide between an (Individual Voluntary Arrangement) IVA or Bankruptcy and an IVA or DMP (Debt Management Plan).

There are a number of simple questions (above and beyond the financial statement) that need asking to identify if an IVA would be right for you or which solution any particular client would be most suited to. Examples follow but are not limited to;

  • Is the client a home owner with equity?
  • Is the client in full time employment?
  • Does the client have a stable job?
  • How old is the client?
  • Is the client self employed?
  • Where does the client live? –  For example, England, Scotland, Wales or Northern Ireland.
  • Is the client committed to clearing their financial problems!

If you find yourself asking “is an IVA is right for me” you must not yet have spoken with anyone who can explain the benefits and pitfalls or pros and cons of an IVA to you based on your current circumstances.

  •  If you had you would not be asking yourself “Is an IVA right for me?”

You could spend all day deciding “is an IVA right for me” or which route to take or which debt solution would be best suited to you, however, after speaking with professional debt advice services you may find the answer sooner than you expect.

If you do not seek the personal tailored debt advice regarding an IVA being right for you, a bad decision could be made.

Should you wish to speak with a personal finance consultant,

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IVA advice and help in England UK

On June 3, 2011, in News, by Lewis Alexander

Personal advice about an Individual Voluntary Arrangement or IVA in England

  • free credit report UK from ExperianHave you been advised to or considered clearing your personal debt with an IVA?
  • An IVA could be the solution you have been looking for to help you become clear of debt.
  • It has a fixed term of repayment, so you know exactly when it will end, however, conditions do apply!

Could an IVA be what you need to clear your debt?

When an individuals personal debts have become such a problem that they feel they can no longer manage the monthly repayments, there is a debt settlement solution called an Individual Voluntary Arrangement or IVA which can give people in debt the help to clear debt that they require.

An Individual Voluntary Arrangement or IVA is a formal procedure set up by a licensed professional, where an arrangement is made between you and all of your creditors to make reduced payments towards the total amount of your debt, in an effort to pay off part of what you owe then normally after five years of making these payments your debts are classed as settled.

  • PLEASE REMEMBER AN IVA IS A LEGALLY BINDING AGREEMENT!
  • An IVA usually lasts for 5 years or 60 months, creditor contact usually stops and interest and charges are usually frozen.
  • You may be required to release equity from any home you may own towards the end of an IVA in order to increase the total contribution your creditors would receive.

After it has been agreed that an IVA is the best option for you, you will be asked some questions about your current financial situation to try and work out an amount that you will be able to repay each month for the term of the IVA.

Personal Debt Help

Once this figure has been agreed by you, an application will then be made to the court for an ‘Interim Order’ and once  this is in place no creditors can instigate legal proceedings against you. There will then be a meeting of all your creditors which you would be wise to attend. Once the majority of the creditors agree that an IVA should be put in place, that’s it.

  • Your financial situation will be reviewed during the course  of your IVA!

An Individual Voluntary Arrangement or IVA should not be confused with other informal debt management procedures as it is legally binding and you are tied into to it for five years normally.

If you are not sure that an Individual Voluntary Arrangement or IVA is the answer for you to clear your debts you contact a trained consultant for further IVA help or advice to help you decide if an Individual Voluntary Arrangement or IVA is for you.

Trust Deed in Scotland

  • In Scotland there is no such thing as an Individual Voluntary Arrangement or IVA.
  • In Scotland it is known as a Protected Trust Deed and does effectively the same job.
  • With a Trust Deed you can;
  1. Stop and prevent interest and charges
  2. Make one simple monthly payment
  3. Put a halt to creditors calls and letters
  4. Stop court proceedings or Bankruptcy

If you think your personal debt situation warrants considering an IVA or Trust Deed, call us to get detailed IVA or Trust Deed facts and figures based on your current situation and obtain further information about debt help in general.

An Individual Voluntary Arrangement or IVA is not the solution for everyone and it should be carefully considered before proceeding. Your credit rating will be affected due to the formal nature of the IVA.

  • You can obtain further information about an IVA if you call us free on from a land line using 0800 018 6868 and we will gladly discuss your situation and give you the very best help with debt problems and IVA advice we can in the strictest of confidence.
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IVA or Individual Voluntary Arrangement

On September 7, 2010, in News, by Lewis Alexander

With unemployment currently rising from 2.46 million in the UK, people are increasingly finding that the fact that they found another job shortly after losing the first is not always the end solution. The problem is that when they were going through the period of unemployment, they were set back financially to a point that they cannot recover.

The credit agreements they have fall into arrears and there is little or no chance of earning enough money to catch up, savings have also usually been diminished and this is when the individual starts to seek a personal debt solution such as an IVA or Individual Voluntary Arrangement.

Hard times are ahead for the UK consumer and people need a solution to clear personal debts that they can trust. The IVA or Individual Voluntary Arrangement is a UK government approved scheme that is legally binding between the individual who has the debts and the creditors who have leant the money.

  • The IVA usually runs for 5 years (60 months) and has an exact end date.
  • Creditors will be expected to stop further interest and charges being applied to the credit accounts whilst the IVA is in place.
  • Any money left to pay the creditors at the end of the IVA process will be written off.
  • In certain circumstances where the individual is a home owner with equity in their home, they will be expected to release some of this equity in years 3-5 of the IVA agreement. This increases the overall contribution back to the respective creditor.

With the rising cost of living on the horizon, household expenditure in the UK is going to be stretched and only those who plan correctly and take advice when required will survive financial turmoil.

If unemployed, one needs to cut costs and be pro active in finding work, downgrade personal expectations in the current economic climate and accept an income that will provide a living.

People in the UK should now start to gear their lives to living without credit, we have been conditioned as a society to use credit and live by using it. The only people who will succeed in the future financially are those who will reduce their need for credit to a basic level.

If you have been considering a debt solution such as an IVA or Individual Voluntary Arrangement, you will be familiar with an alternative personal debt solution called a debt management plan. It is important to be aware that a debt management plan is NOT legally binding and does NOT have an exact end date.

Some companies will claim they can write off all your debts, you should be very careful of these claims, only certain amounts of debt can be written off under an IVA agreement and a voluntary petition or creditors’ petition for bankruptcy is the only process that would usually write off 100% of any persons’ unsecured debt.

When you enter into an IVA or Individual Voluntary Arrangement, your IVA is managed by an Insolvency Practitioner and this person is legally responsible for proposing the case to your creditors and administering the IVA process on your behalf. An IVA or Individual Voluntary Arrangement should not be entered into without much consideration.

You are at risk of being petitioned for bankruptcy by your creditors should your IVA fail. An IVA can fail for many different reasons and the main one usually is due to the client no longer being able to afford the agreed monthly repayment. In this situation, the Insolvency Practitioner will re assess your income and expenditure and offer advice accordingly of what the best route forward for you would be.

  • A great number of people do successfully complete IVAs’ and are then confident that they chose the best solution to clear their debts.
  • To qualify for an IVA an individual would have approximately £25000 of unsecured debts and be able to contribute a disposable income repayment of around £250 per calendar month.

Not all situations require an IVA and you should not enter into an IVA or Individual Voluntary Arrangement without much prior consideration. For further advice regarding personal debt issues please call our free from a landline personal debt helpline using 0800 018 6868, lines are open 24 hours a day and your call is free.

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Debt Help and Advice in Scotland

On November 27, 2009, in News, by Lewis Alexander
  • Do you live in Scotland?
  • Are you in need of Personal Debt Help and Advice?
  • Is the difference bewteen debt assistance in Scotland and England confusing you?

For most people that live in Scotland, the differences between debt solutions that are available in England compared to those in Scotland can be some what confusing to say the least.  If you have previously taken advice from debt agencies and are still struggling to understand the various options available to clear your debts as a Scottish resident, please read this blog post further as we believe this will help you.

  • Trust Deed

Most people are now familiar with the term IVA (Individual Voluntary Arrangement), for those that are not, it is a legal agreement between you and your creditors in England ONLY, and is a form of Insolvency that allows you to pay back an amount of the money you owe within a set or fixed period of time, usually 60 months or 5 years.  The remainder of what you owe that has not been repaid is then written off by your creditors leaving you debt free.

  • The Trust Deed, is very simply the Scottish alternative to the IVA in England.  The difference is that in Scotland, the Trust Deed lasts for 36 months, not 60 months like an IVA in England.

Creditors are not duty bound to agree to Trust Deeds as they do need to make sure that they are obtaining a satisfactory percentage of the total debt to be repaid.  This is not always possible when the clients circumstances are investigated as the client sometimes does not have enough disposable income (the money left over after essential bills and living costs) each month to meet the financial repayments, in this case the client can then consider a debt management plan or Bankruptcy.

  • YOU SHOULD NOT APPLY FOR ANY FURTHER CREDIT ONCE ACCEPTED ONTO A TRUST DEED!

A Trustee will manage your Protected Trust Deed for you and Trust Deeds can only become protected if certain requirements are met by the individual, if the Trust Deed becomes protected, your creditors cannot take legal action against you and the interest or charges on your personal debt will become frozen.

You will NOT be charged to enter a Trust Deed arrangement, your creditors are responsible for paying your Trustee out of the contributions you make whilst the agreement is in place.

  • Bankruptcy in Scotland is sometimes referred to by some as Sequestration

Sequestration involves removing or seizing a persons belongings or assets, to a value of the debt owed with a view to being of financial benefit to the creditor owed the money or in some cases this can be for monies owed to the Scottish state.

Laws in Scotland that appertain to personal debt and finance agreements can vary based on what type of agreement you have signed and with which company or lender.  For an exact definition of different legal agreements, you should without question consider speaking with a Scottish Insolvency Practitioner or solicitor.

The above is a very basic explanation designed to give you a brief outline of the differences between, debt help in Scotland and that to the rest of the UK.  For a more detailed explanation you can contact our personal debt helpline which is open 24 hours a day.

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IVA or Debt Management Plan?

On November 7, 2009, in News, by Lewis Alexander
IVA or Debt Management
IVA or Debt Management

The most difficult decision when trying to clear personal debts can be which debt solution to choose after doing all your homework on the options available.

  • Debt Management Plans or
  • IVAIndividual Voluntary Arrangements
  • are usually the two solutions that people have to decide between. When faced with the two options, there are many factors that influence the choice of informal debt management over an IVA and likewise, an IVA over a debt management plan.

It is very important that you understand the differences between these debt solutions, as if you do not, you could easily have the wool pulled over your eyes by a clever and unscrupulous debt advisor that wants to earn extra commission for placing you onto an IVA as opposed to an informal Debt Management Plan.

A professional debt management company such as Lewis Alexander will offer you advice tailored to your personal situation and if you are better suited to a debt management plan rather than personal Insolvency or an IVA, we will tell you, however, you make the final decision based on the debt advice given to you.

It is your choice no one Else’s!

When you are in debt it can feel like everyone else does not understand your particular situation and that you feel that your debt problems are some how different to all others.  This is not true, it is actually a mental stigma associated with being in personal debt, you are not alone and your financial problem is usually pretty much the same as others around you, it is your personal change in circumstance that will differ to other peoples, this is what creates the problem of being in debt in the first place.

Some people split from partners or others suffer a death in the family, others may have hours at work reduce resulting in less income, the list is endless but what is the same is the debt problem that people find themselves with due to being set back financially by the change in circumstance they may have suffered.

The main difference between an IVA and Debt Management Plan (DMP) is that

  • An IVA is a legally binding agreement
  • A debt management plan is not.

With a debt management plan you can expect to repay much of what you owe.  With an IVA, the debt that is not repaid within a 60 month period is then written off by your creditors, this is agreed at a creditors meeting prior to the IVA commencing.

The IVA will guarantee to freeze any interest or charges being applied to your accounts, a debt management plan will not and it is down to the hard work and efforts put in by your chosen debt management company as to how quickly your debt is reduced, make your selection regarding your chosen debt company or debt service carefully!

  • The cost of choosing or selecting the wrong debt company or agency to solve your debt problems can be as high as the interest being applied by your creditors to your accounts.
  • The wrong debt company will have no concern on actually getting the job done, they are more concerned with extracting funds from you and fobbing you off with none truths.

For honest, genuine, debt advice and help in the UK, call our free from a landline personal debt helpline today using 0800 018 6868, your personal details are dealt with in absolute confidence and your call is free!

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Help to Clear Debt

On October 31, 2009, in News, by Lewis Alexander
  • Do you need help to clear debts in the UK?
  • Are you struggling with your monthly repayments?
  • Refused loans to consolidate personal debt?

At Lewis Alexander we understand how personal debt problems can impact on your daily life and we offer help and assistance to clear your debts without another loan.  You do NOT need to take on further credit or loans to clear credit card debts or other unsecured credit agreements.

You can start by exploring proven debt solutions such as a Debt Management Plan or IVA (Individual Voluntary Arrangement).

Debt solutions such as bankruptcy are usually the last to be considered and also the most severe! Please remember that you should not pay debt companies for advice about how to clear personal debts.

There are many different ways of finding free help to clear debts, many sites online will offer information that when put together, gives you a broad but at times detailed explanation of solutions available to clear personal debt.

  • Should you really trust the companies you owe money to when looking for help to clear debts?

Help to clear debts in the UK is usually chargeable when you use the services of a debt management company or Insolvency Practitioner that you would be expected to make repayments via a third party, other than when starting one of those two options, no individual should be asking you to part with any money unless you owe it directly to them.

  • It is very important that people consider all options available when obtaining help to clear debts!

Apart from the main 4 solutions (debt management plans, bankruptcy, Consolidation loans and Insolvency)  there are no magic ways of wiping out debt, unenforceable credit agreements do exist but not in the numbers that some companies are advertising!

  • Debt management should only be entered into with the right company, do your homework!
  • An IVA should only be entered into with a licensed insolvency practitioner
  • A loan to clear debt should only be taken from a licensed credit broker
  • Bankruptcy is entered into through your local county court

Be careful of being charged upfront fees for help to clear debt and services that may not even exist, some companies are charging people for loan applications to clear debts and these people are finding that loans are still not available to them, even though a  fee has been paid!

Should you wish to discuss you personal financial issues with a trained personal debt advisor and simply need help to clear debt, please call our free from a landline personal debt helpline using 0800 018 6868, our staff are UK based, lines are open 24 hours /7 days a week and your call is FREE.  All calls are dealt with in confidence.

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