There are lots of different factors to consider when giving the best debt advice, including how much you owe and to how many creditors, whether you own a home, what type of debt it is (eg. secured or unsecured) and much more.
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
Debt Advice 
The debt solutions that are
available include:
available include:
IVAs Advice
Taking out an IVA (Individual Voluntary Arrangement) is a way of declaring yourself insolvent. Your unsecured debt will be written off after a period of 5 years, in which time you have made a single affordable payment each month to your creditors.If you contact us for free debt advice we will be able to let you know whether this is your best option considering your circumstances. All of the information that you give us is completely private and confidential.
If, upon reflection, it is decided that an IVA is your best option then we will be able to put you in touch with an Insolvency Practitioner who will be able to set up the agreement with your creditors. As long as at least 75% agree to the arrangement, it will be legally binding wo all of them and they will not be able to pursue you for additional payments.
SUITABLE?
Do you Qualify for an IVA?
Not everyone is going to be eligible for an IVA. The conditions are:
You must be insolvent (your unsecured debt must outweigh your assets),
You must have at least £15,000 worth of debt,
You must have disposable income (after essential living costs have been taken in to account) of at least £200 a month.
Even if this does describe your situation though, there may be other options that will be better for you, such as a Debt Management Plan. Get in touch for free debt advice and we will help you to make the right decision.
Not everyone is going to be eligible for an IVA. The conditions are:
You must be insolvent (your unsecured debt must outweigh your assets), You must have at least £15,000 worth of debt, You must have disposable income (after essential living costs have been taken in to account) of at least £200 a month.Even if this does describe your situation though, there may be other options that will be better for you, such as a Debt Management Plan. Get in touch for free debt advice and we will help you to make the right decision.
HOW WORK?
How do IVAs Work?
Before taking out an IVA it is a good idea to get expert debt advice as there may be better options available to deal with your debt problems. By getting advice on debt from our Debt Counsellors we will be able to help you to work out how much you can afford to pay towards your debt each month, and which option will be best debt solution for you.
Should you decide to go ahead with an IVA, the following steps will be taken:
You will have to contact an Insolvency Practitioner (which we can put you in touch with at DebtAdvice.net),
Your Insolvency Practitioner will present your creditors with the plan, including how much you can afford to pay them each month,
If at least 75% of your creditors agree to your deal it will become legally binding,
You will make one monthly, affordable payment to your Insolvency Practitioner and they will distribute this to your creditors (after they have taken our their monthly fee),
After 5 years, the remainder of your unsecured debt will be written off (sometimes you will be asked to release some of the equity in your home to pay a lump sum towards the end of the 5 years).
Before taking out an IVA it is a good idea to get expert debt advice as there may be better options available to deal with your debt problems. By getting advice on debt from our Debt Counsellors we will be able to help you to work out how much you can afford to pay towards your debt each month, and which option will be best debt solution for you.
Should you decide to go ahead with an IVA, the following steps will be taken:
You will have to contact an Insolvency Practitioner (which we can put you in touch with at DebtAdvice.net), Your Insolvency Practitioner will present your creditors with the plan, including how much you can afford to pay them each month, If at least 75% of your creditors agree to your deal it will become legally binding, You will make one monthly, affordable payment to your Insolvency Practitioner and they will distribute this to your creditors (after they have taken our their monthly fee), After 5 years, the remainder of your unsecured debt will be written off (sometimes you will be asked to release some of the equity in your home to pay a lump sum towards the end of the 5 years).EFFECTS?
What are the Effects of Taking Out an IVA?
Here are some of the main effects of using an IVA, for more information get in touch for free debt advice.
Your payments on debt will be reduced to a manageable level,
You will not be able to use any credit during the 5 years that it is in effect,
Your home will be protected, unlike with Bankruptcy,
You will be debt free at the end of the term of the arrangement.
Here are some of the main effects of using an IVA, for more information get in touch for free debt advice.
Your payments on debt will be reduced to a manageable level, You will not be able to use any credit during the 5 years that it is in effect, Your home will be protected, unlike with Bankruptcy, You will be debt free at the end of the term of the arrangement.ADVANTAGES
What are the Advantages of IVAs?
It is legally binding on your creditors, who will not be able to harass you for payments,
You will only have one monthly, affordable payment to make for 5 years,
Your assets, including your home, are protected,
Interest on debt is frozen,
Any debt left over after 5 years will be written off.
It is legally binding on your creditors, who will not be able to harass you for payments, You will only have one monthly, affordable payment to make for 5 years, Your assets, including your home, are protected, Interest on debt is frozen, Any debt left over after 5 years will be written off.DISADVANTAGES
What are the Disadvantages of IVAs?
You may have to release some equity in your home in order to make a lump sum payment towards the end of the arrangement,
You will not be able to get credit during the term of the arrangement,
You will have a bad credit rating for a year after the arrangement,
If you cannot keep up with the payments you may be forced in to bankruptcy.
You may have to release some equity in your home in order to make a lump sum payment towards the end of the arrangement, You will not be able to get credit during the term of the arrangement, You will have a bad credit rating for a year after the arrangement, If you cannot keep up with the payments you may be forced in to bankruptcy.Contact Us
Get in Touch
If you would like more information on IVAs or general debt advice, please feel free to get in touch with DebtAdvice.net. Our adviser are very experienced in debt problems and will be able to give you impartial advice on debt.
If you would like more information on IVAs or general debt advice, please feel free to get in touch with DebtAdvice.net. Our adviser are very experienced in debt problems and will be able to give you impartial advice on debt.