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Posts Tagged ‘individual voluntary authority’

Those IVA adverts on TV stating that people can write off 75% of debt are a best case scenario. It is also a highly improbable scenario but it can be better than bankruptcy.

If you choose IVA as a debt solution, your creditors will seek a minimum of 25p for every £1 of debt as an absolute minimum which is where this figure in the adverts originates. It will be necessary to accept that there is a strong possibility that you will have to pay a lot more than this, particularly if you have a high earning professional vocation.

The insolvency practitioner also comes with a hefty price tag and can add a further £7000 to the amount you need to raise. If you also own a property you will be expected remortgage at the end of year 4. This could actually mean that you end up paying your debts in full.

If you maintain your payments for 60 months you will be discharged from your remaining debts. There are however some IVA benefits. It is not an easy option, but does give people with crippling debt problems the chance to keep their job, home and self respect.

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