As a solution to personal debt problems an IVA offers a good option to many people. However the qualifying criteria are quite narrow and so if you are having financial difficulties you may have to consider an alternative to an IVA.
Your possible alternatives to an IVA include –
Probably the most well known solution to financial problems is bankruptcy. Personal bankruptcy is one of the most serious steps that can be taken to clear overwhelming debts. It does however have several benefits. The bankruptcy process lasts just one year at the end of this year you are able to start afresh. By filing for bankruptcy your finances are placed in the hands of a nominee who will deal with your debts on your behalf. If you become bankrupt it will be recorded on your credit file and you may have difficulty borrowing money in the future.
Read more – IVA or Bankruptcy?
Designed as a form of bankruptcy, Debt Relief Orders were introduced recently, they are a way for people to apply for personal bankruptcy without having to go through the full Court bankruptcy procedure. The fee for the Order is just £90 and so it is a cheaper option than bankruptcy. However to qualify for a debt relief order you must fit certain criteria including having debts of less than £20000 and assets of less than £300.
Read more – Debt Relief Orders
In the UK the most widely used IVA alternative is debt management plans. A debt management plan is an informal arrangement to restructure your debt repayments. Your debts are consolidated into a single amount and repayments arranged at an amount based on what you can afford. Debt Management Plans will help you to get your finances back under control without bankruptcy or resorting to taking out another loan.
Read more – IVA or Debt Management?
An administration order is a court order designed to help when you are struggling with unsecured debt. With an admin order your debts are consolidated into a single monthly payment. This reduced payment is made to the court who then divide it between your creditors on a pro rata basis.
Read more – Administration Orders
A full and final settlement is an offer to partially repay your outstanding debts on the condition that your creditors agree to write off the remainder of the debt. It is a suitable solution to your debt problems if you have access to a lump sum of money such as from sale of property, savings, remortgaging or inheritance. Offers are usually based on a fair proportional basis which reflects the amount owed to each creditor.
Read more – Full & Final Settlement Offers
For more information and advice on all IVA alternatives call us today on 0800 043 50 43 or complete our enquiry form.
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Total unsecured debt : £4000