Could A Government IVA be The Solution For You?

At the moment there are a plethora of individuals online who are looking for solutions to their personal debts, with debt assessments being at an all time high and post Christmas Britain being a hotbed of activity due to financial uncertainties (also influenced by Brexit, which is Britain’s’ pending exit from the EU) and a range of other unforeseen circumstances calling for people to search for solutions to their outstanding debts.

When you say ‘Government IVA’ what does this really mean?

Well IVA’s are not government issued but they are Government backed debt solutions, which means they are supported by the Government but not issued by the Government.

This is due to legislation that was decided in 1986 as part of the ‘1986 insolvency act’ which enables people in debt to clear away the existing balance of debt after a period of approximately five years, after which the remaining debt is considered ‘extinguished’.

People should think carefully about the individual voluntary arrangement as a solution to their issue because it has helped literally 1000s of people get out of debt much faster than if they would have tried to repay the debt without it.

There are alternatives to IVA’s such as a ‘DMP’ (debt management plan) however the debt management plan is less formal and not as strong a solution in that it has less legal power than an IVA, if you have larger debts’ in general the individual voluntary arrangement is a better solution for people with debts’ in excess of 5,000.

Before taking on an IVA due to the commitments involved it is a good idea to take into account the positives and the negatives of the IVA because it is a big decision which brings a range of advantages, pros and cons and a lot to consider, however it does enable you to protect your assets, which in itself is very useful to homeowners.

Can a self employed person get an IVA?

Yes this is possible, in fact the individual voluntary arrangement was originally designed in 1986 to help businesses’ keep trading when they became insolvent, however this was later called a ‘CVA’ (company voluntary arrangement) and the ‘personal debt’ version of the insolvency solution was named the ‘individual voluntary arrangement’ instead, so yes, whether you are a sole trader or the owner of a limited company, you can make use of this debt solution to help you become debt free no matter how high or severe your debts are.

What is a good way to go about getting started?

There are a wide range of websites out there which can help you initiate this debt scheme, and there are plenty of debt advisors’ ready to offer you a free debt assessment.

Make sure to select a reputable website such as ‘Debtsolve.UK’ however there are many out there which are suitable to help you get started.

Are there any risks associated with this debt arrangement?

Well the IVA is made to get you out of debt and to protect your assets so it would be hard to imagine how and why this would be more risky than avoiding dealing with debt or even alternative debt relief schemes.

If you would like to find out more about the individual voluntary arrangement, there are a wealth of Internet websites online with a huge amount of information for you to make an informed decision and to initiate a debt assessment for you to figure out if one is suitable for you.