Individual Voluntary Arrangement – a better way to beat bankruptcy.

When the debts get too much and you think there is no other way out except bankruptcy. Stop. There is another option open to you which has fewer of the penalties of bankruptcy, but can be just as beneficial: it’s called an Individual Voluntary Arrangement (IVA).

An IVA is an official debt repayment plan, which in most cases includes:

• The freezing of interest charges
• A reduction in the total amount of debt owing
• Up to 75% of your total debt ‘written off’
• Legal protection from creditors (as long as you adhere to the IVA terms)

You may have heard of Individual Voluntary Arrangements (IVAs). But what are they and how can they help your financial situation?

• Halt all legal action in force at present (including proposed or undischarged bankruptcy proceedings).
• Stop judgements, warrants or winding-up notices.
• Stop debt collectors calling at your home.
• Stop harassment by phone or letter.
• Stop formal demand notices.
• Stop pursuit by collection agencies.

The IVA process

If an individual cannot afford their payments to existing credit commitments, they may be able to enter into a formal agreement setup by an insolvency practitioner. In turn, they will arrange monthly payments, usually over 5 years, that are affordable for the individual and acceptable for the creditors. From there, the debt is written off. This scheme is not suitable for everyone as it depends on such factors as the amount of credit you have, the number of companies you owe money to, equity if you are a homeowner, and affordable disposable income.

Protected Trust Deed (Scottish residents only)

Trust Deeds are the Scottish equivalent of IVAs, and only available to residents of Scotland. At Advanced Debt Solutions, we offer full advice on Trust Deeds. If you qualify, we can arrange a Trust Deed for you with your local insolvency practitioner.

How does a Trust Deed work?

If an individual is unable to afford their payments to existing credit commitments, they may have the chance to enter into a formal agreement setup by a fully licensed insolvency practitioner. This person will arrange monthly payments, usually over 3 years, that are affordable for the individual and acceptable for the creditors. From there, the debt is written off. Any interest and charges on your account are also stopped. Suitability for these schemes depends on the amount of credit you have, the number of credit companies you owe, equity if you are a homeowner, and affordable disposable income. The law also dictates you must be a resident of Scotland to qualify for a Trust Deed.

There is a better way, call 0800 111 6655 or email us and we will give you free and confidential advice to escape your financial difficulties.

For further information please visit www.iva-solutions.co.uk or click here for IVA Help .