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Sun 22nd Nov, 2009
Posted in IVAs at 10:10 am by Edward Woodwards
If your outstanding debts are up to 15000 or above, you must consider applying for an IVA, which stands for Individual Voluntary Arrangement. This is a very useful debt solution in times of economic crisis. It is a legal procedure, approved by the governments to avoid individual bankruptcy. Indeed, it is a difficult decision to apply for an IVA, but this is one of the reliable and convenient ways of getting rid of the loans.
There are a few conditions, which you must confirm before applying for an IVA. Firstly, you should be in paid employment, so that you shall be able to settle your debt in instalments within a specific period. Secondly, most of the IVA settlements are not meant for mortgages, and for secured loans. Thirdly, you should have at least two creditors.
The first step that should be taken for applying for an IVA is to get in touch with an IVA expert. This may be done by searching on the internet, or through the yellow pages. Once you have chosen the IVA expert of a reputable company, you are ready to go ahead. You would be given an application form to fill out all your personal and financial details.
The minimum amount that you can offer to the creditors is calculated after assessing your financial status with the help of the details in the form. You should mention an enough minimum amount for getting your application approved. The IVA expert will satisfy you with the procedure and will then prepare the statement of affairs and would send it to the IP or the company Insolvency Practitioner, who becomes a legal representative for your case to your creditors.
The IP drafts a formal written statement, or a proposal of your financial status, and your credit background. He indicates in his report that you have tried all other alternatives to pay off your debt, but IVA seems to be the last choice. You will be required to sign this statement, which would be witnessed by either a solicitor or a commission of oaths.
Your proposal would then be forwarded to the creditors. You might be asked for some modifications in your monthly payments. Once the proposal has been amended, the creditors might call for a meeting to vote for your case. Your proposal would get a legal status and the creditors would abide by it only if you mange to get 75 percent of the votes in your favour.
Information of the acceptance of your proposal would duly be sent to the court as well as your creditors. The IP would then become a supervisor of all the dealings between you and your creditors. You have to fulfil all the requirements of your creditors, for which you may even have to dispose off some of your assets. Your debt would be paid off in time if you regularly make your monthly payments.
IVAs have so far helped many individuals who were on the verge of bankruptcy, by giving them the legal advice and support that they desperately needed.
Edward Woodwards is a financial consultant. You can take iva help and solutions to debt problems. Find out more information at his recommended website http://www.iva.org.uk.
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Wed 14th Oct, 2009
Posted in IVAs at 8:38 am by Edward Woodwards
by Edward Woodwards
In the present day world, economic recession is on its rise. People are having a lot of financial issues. In such a situation, it is really impossible to carry out all the expenses of daily life. In order to achieve all the goals of their life, and to fulfil all the desires, people mostly get inclined towards loans. Thus, they are eventually caught in to the mess of debts.
If you are unable to pay off your debts, you will simply go for bankruptcy as your best available option. You can have a far better option as well if you really want to save your money. You can go for IVA that is also known as personal bankruptcy. It is called personal bankruptcy because it allows you to declare bankruptcy; however, it is not applicable in all situations. Those who want to keep away from bankruptcy must go for the option of IVA. It is a type of agreement which takes place between the debtor and the creditor. Moreover, it also takes in to account the financial issues and other problem of the debtor. Thus, relaxation is given to the debtor.
In order to decide from the two available options, that is, bankruptcy and IVA, you need to know the difference first. In case of bankruptcy, it is needed to sell out all your assets while in IVA there is no need of selling your home or car. Instead, you can enjoy all the luxuries of life and, at the same time, pay off your loans.
It is clear that the credit condition becomes zero when you declare yourself as bankrupt, and for having a new start, you need money, for which you have to again opt for loan. On the other hand, your assets are still with you once IVA is completed. Also, you can have a new start but without taking loans.
IVA is a flexible option as it gives you a lot of favours. In case of IVA, you have to hire an expert so that he carries out the procedures of IVA on your behalf. Moreover, it facilitates you to make adjustments in the terms of the agreement.
Since bankruptcy is announced in the newspapers, it remains like a stain throughout your life. Bankruptcy greatly decreases your career opportunities as nobody will tend to hire a person gone through bankruptcy. Moreover, you will not be allowed to set up any sort of business. Thus, personal bankruptcy affects your personal as well as career life. On the other hand, IVA remains confidential as it takes places between the debtor and the creditor alone.
The selection between these two options is based on the financial condition of the debtor. If he has no constant income, and also has to pay off a lot then he needs to go for bankruptcy. The one having regular earning source should avail IVA.
It is wise to consult an expert who can most probably tell you which option you should go for.
About the Author:
Edward Woodwards is a financial consultant. You can take
iva help and solutions to your debt problems. Find out more information at his recommended website
http://www.iva.org.uk.
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Fri 1st Aug, 2008
Posted in Bad Credit, Borrowing, Budgeting, Consumer Credit, Consumer debt, Credit Card, Debt management, Financial news, Financial products, IVAs, Missed payments, Personal debt, Personal loans, Secured loans, Spending, UK Finance, Unsecured loans at 10:35 am by Steve Smith
TDX Group, the organisation behind the Group Debt Index, claim that there has been a significant rise in the number of debt management plans taken out in recent months.
The Group claim that debt management, such as Individual Voluntary Agreements (IVAs) will rise by a further £5 million by Christmas, growing steadily by year end.
Mark Onyett, chief executive of the TDX Group said: “We’re already seeing far higher numbers of consumers struggling with personal debts and the pressure is set to intensify over the coming months.”
The research showed that an increasing number of people with financial problems are finding it difficult to make repayments on loan and credit card debts.
This accords with research showing the house repossessions are steadily climbing and a rise in people approaching debt charities for advice.
Since the start of the credit crunch many people have tightened their belts, but it simply isn’t enough.
Whilst most families are wise enough not to extend their credit with further personal loans, the increases in the cost of living has pushed many families deeply into debt.
Unfortunately, this Christmas could see many families hard pushed to pay their bills, let alone have the festive season of their dreams.
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