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Stigma of Bankruptcy

Bankruptcy is often referred to as the option of last resort for people. When you are in financial trouble you are desperate to find a way out. Many people try to avoid being declared bankrupt and some opt for another solution even though bankruptcy may well be the best solution for them.

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Insolvency in Ireland

Back in 2009 we looked at what the prospects were at that time for new legislation which would address the then burgeoning problems of personal debt and for many people the looming threat of personal insolvency.

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IVA and legal action

One of the real benefits to using an Individual Voluntary Arrangement is that it gives you a level of protection from being pursued through the courts for your debts. If your creditors agree to an IVA, and as long as you keep to the agreement (i.e. keep up with the payments agreed in it), they cannot then take any legal action against you regarding the debts concerned.

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IVA Advantages and Disadvantages

There has been much press about IVAs in recent years, and it can be baffling at times trying to work out what the value of any such measure actually is. There are a specific set of circumstances in which an IVA is a truly effective measure in dealing with financial troubles, but IVAs are not appropriate for everyone.

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IVA and Mortgage Arrears

If you’re struggling to meet your mortgage payments, there may be a number of things that can help. Individual Voluntary Arrangements are mainly used for unsecured debts, and it is rare for mortgage arrears to be included in an IVA plan for that reason.

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IVA and Credit Cards

If you have debts from credit cards that are out of control, then an Individual Voluntary Arrangement (IVA) may help. IVAs are designed to help people who have unsecured debts such as credit cards, store cards and unsecured loans that they can no longer manage.

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IVA and Repossession

Individual Voluntary Arrangements (IVAs) are primarily used for unsecured debts such as credit cards and loans. Mortgage arrears are not normally covered by an IVA for this reason. However, if you’re struggling with debt and are being threatened with repossession, an IVA may help in conjunction with other measures.

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IVA and Loans

If you have debt from loans that you are failing or are going to fail to make the payments for, there are a number of things that you can do. Individual Voluntary Arrangements (IVAs) can help in situations where unsecured debt has become unmanageable.  IVAs are really intended for unsecured debt, and therefore may not help if your loan debt is secured against an asset such as a house or car.

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IVA and CCJs

If you’ve had a County Court Judgement (CCJ) issued against you, it can seem like you have very few options as time passes. However, this is not necessarily the case, and there are measures that may indeed help your situation. There is no barrier to gaining an Individual Voluntary Arrangement if you have had CCJs in the past.

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IVA affects Credit Rating

When your financial situation has gotten to the point where you can’t make the debt payments you owe, it sometimes seems like you’ll never again be in a solid position. However, this is certainly not the case, and if you use an IVA you can start working in a positive direction in no time.

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IVA and Unsecured loans

Individual Voluntary Arrangements (IVAs) have been the subject of much discussion in recent years, and they can indeed be hugely helpful to people in certain circumstances. If you have debt from unsecured loans that you cannot manage to make the payments for, then an IVA may indeed help you.

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IVA and Secured Loans

If you’re struggling to make the payments for secured loans, for example loans that use your home or another possession such as a car for security, there are a number of things you can do to relieve the situation. However, Individual Voluntary Arrangements (IVAs) are primarily intended for use with unsecured borrowing such as credit cards and loans that do not have assets used as security.

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An IVA

If you and your Insolvency Practitioner have decided to propose an IVA for your debts, it is incredibly important that the arrangement itself is workable, making the IVA an effective measure in getting your finances in shape.

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Time to arrange an IVA

IVAs typically don’t take too long to set up, and are generally up and running within a few weeks. Your Insolvency Practitioner (IP) will guide you through the process, and make sure you understand what is going to happen at each stage.

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Debt written off in an IVA?

It’s best to think of an IVA as a way to clear debts rather than to have debts written off. Although in most cases an IVA will mean that you don’t have to pay the full amount of the debts back, it is mainly a way for you to settle your debts rather than having them forgotten about.

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IVA Details

There are so many people and services claiming to have the answer to your debt problems that it can often be difficult to figure out what each solution actually involves. Individual Voluntary Arrangements are often put forward as an easy answer to financial insolvency, but only the right advice can help you to know whether they will in fact help you personally.

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Can I trust my Insolvency Practitioner?

When your finances are in a bad way, the importance of getting good advice is impossible to overstate. If bankruptcy is a threat, or if you’re looking to use such measures as Individual Voluntary Arrangements, then you’ll be looking to use the services of an Insolvency Practitioner or IP.

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IVA if I can’t get more credit

Individual Voluntary Arrangements are, first and foremost, a way to clear debts that you can no longer manage the payments for. If your debt situation is out of control and bankruptcy is becoming a possibility, then an IVA may help.

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Can’t pay my debts

Finding your finances out of control is a pretty unpleasant experience. It can seem as though you have fewer and fewer options, but this may not necessarily be the case.

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Debt amount for an IVA

Individual Voluntary Arrangements (IVAs) are designed for people who have personal debts that they cannot manage the repayments for. In general, IVAs are pretty flexible, but they are typically used for people (not companies) with debts totalling at least around £12,000 and where the debt is owed to at least three different lenders.

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Fees and key info

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MoneyHelper

If you’d like more information on other sources of free debt help and advice you can visit MoneyHelper – an organisation, backed by government and set up to offer free and impartial advice to those in debt. - Click here to visit MoneyHelper