An IVA is a type
of debt consolidation programme set up to provide a solution to the
problem of personal debt and to deal generally with the issue of individual
insolvency. IVAs are never designed to be one-size-fits-all cures to
any debt problem, because individual circumstances can vary so much.
The needs of one
household or one individual can be very different from the needs of
the next. Any debt consolidation programme advice given must reflect
the diverse nature of the situation people find themselves in.
An IVA writes off
the larger part of a person's debt at the beginning of the plan (although
be wary of the exaggerated claims made in some circles: it is rarely
more than 60 or 65 percent of total unsecured debt which can be 'written
off' in this way). All good IVA advice of this sort will make sure that
you get the optimum results with the lowest repayments together with
the highest percentage of debt write-off.
Most people say
that IVAs are the best type of debt consolidation programme because
of their advantages over all the other types. But not everyone is qualified
to get an IVA. So fill in the form below for independent and
impartial advice 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.
In order to be
eligible for a debt consolidation programme the applicant has to be
able to show a nett income in excess of a certain minimum and have arrears
of more than a certain sum and not greater than a specified maxima,
and these figures may change from one insolvency practitioner to another.
Usually earnings should be proved to cover the cost of the repayments
after other necessary bills have been paid such as mortgage payments
and electricity and gas, etc. The average minimum debt is around £2,000
although this figure can vary. A top value of £50,000 is sometimes given,
though by making use of a broker the applicant will be shown best source
to deal with their own particular situation.
A number of disciplines
have grown up surrounding aspects of failure, including the legal profession
and newer professions including such diverse types as insolvency practitioners.
All such experts have their part to play. Each will have their own area
of expertise which you should make use of as appropriate. Making use
of a debt consolidation programme will make your recovery from insolvency
quicker and easier to bear.
A great advantage
of such an arrangement is that it may instantly cut thedebt by a large
percentage. This great reduction in debt makes a considerable difference
and is the main thing that differentiates an IVA from a normal debt
relief programme. Therefore folk seeking debt reduction programmes should
apply for one of these rather than a standard debt relief program on
A debt consolidation
programme will usually be drafted by a qualified insolvency practitioner
and shall be made specifically to cover the specific requirements of
the client. There is no typical method to such things as every state
of affairs differs, and some are vastly different. The insolvency practitioner
will draft the optimum programme in accordance with the client's individual
situation and then set up a programme of repayments usually for 5 years,
although in some situations this may change.
A debt consolidation
programme is a legal instrument and most people would jump at the chance
of entering into one as it is bound in law and discharges the client
from all debts when the agreed term has been concluded. It is a more
benign resolution to long-term debt than other harsher instruments such
as making the debtor bankrupt and it carries none of bankruptcy's stigma.
attempt to rescue people who are suffering from debt in various ways.
There are recognised schemes like IVAs and CVAs to assist in the methods
of corporate and personal debt recovery and to try and palliate what
is always a highly difficult process, and clearly a debt consolidation
programme is involved in this. The aim is intended to be towards safeguarding
personal resources if at all possible and also in protecting the property
of individuals by legal means. This takes into account both private
property and also the assets of businesses on which the wealth of individuals
debt consolidation programme
a look at the Insolvency Service's leaflet called 'In Debt', downloadable
website is property of Debt Consolidation Programme. Copyright 2002
-Thereafter. All rights reserved.