To deal with mountains of debt is not easy. It affects directly your health and living standards. There have been cases where people find it easy to quit life rather than face threatening and warnings of creditors. This happens because people are unable to find any sort of help from their family, government and agencies. People are mostly unaware of government backed schemes that provides you relief from the increasing debt. If you are one of those feeling distressed and dejected unable to repay debt, you can look for effective debt management plans designed to provide support to the debtors. Being a resident of England, Wales or Northern Island, you can seek advice from insolvency practitioners who are experienced in assessing your financial condition and make you apply for government backed IVA schemes.
A person completely feeling disappointed from his current financial condition cannot take right and long term decisions. It is very true that at this point of time, s/he needs help and support to take a decision and move a step forward. No one likes to be declared as bankrupt. The title of bankruptcy is not recognition or a good status. Being declared as bankrupt is a great loss of your credibility, reputation, social status and living standard. The new path of starting from scratch is very difficult and challenging. You need courage, ability and motivation to earn your living standards once again.
There is provision for debt help and advice for the residents of UK at IVA pros website who are in need of support and effective debt solutions People can apply for IVA which is popularly known Individual Voluntary Agreement that allows you to repay your creditors an affordable monthly payment. Under IVA, you have to approach an insolvency practitioner who deals with your creditors to implement IVA. It is legally enforceable that makes you legally bound to repay the creditors the amount that you can afford for five to six years. The guidance is provided by the expert and qualified insolvency practitioners who have the competency to interpret from your financial statements that how much you can afford to contribute monthly to your creditors.
Feel free and get a fresh start
It is a universal truth that we cannot get away from our past. Our past deeds follow us in our present. This is the way a life cycle operates. The same goes for your financial burdens. If you are unable to repay your unsecured debts, you have to find a good legal solution that would not adversely affect your future. IVAs helps you to achieve a secured future and live your life respectfully. Unlike Bankruptcy, it is a liberal and flexible solution allowing you to maintain your goodwill. It truly affects your credit rating after completion of six years and reduces your credibility. But it is not as harsh as bankruptcy.
You would never be blacklisted from the eligibility to obtain a loan or an unsecured debt. It has been considered as one of the most popular debt solutions in England. It is very easy to apply for IVA.
You must be thinking about how to decide that you need an IVA. Well, it is very simple to guess. You are making painstaking efforts to repay your debt but still you are unsuccessful. It is becoming impossible to manage your finances and make payments to your creditors. Many creditors are constantly sending warnings messages and calls to repay the debt immediately but you have no answers. When the above conditions are prevailing in your life, you can be certain that this is the time for you to apply for an IVA. There are other popular debt management plans such as administration order, debt relief order, bankruptcy, and trust deeds that are available depending upon your financial conditions.
This phase which makes you realize that your debts are turning into bad debts for the creditors, you feel ashamed and shattered. To improve the situation, you can approach to file for an IVA that deals with your creditors and make them understand the current situation. The meeting with the creditors is conducted by the appointed insolvency practitioner who negotiates with them. The proposal of IVA is presented before the creditors that indicate the amount the debtor is willing to contribute monthly for five to six years. If that amount is acceptable by the creditors, then the IVA comes into force legally. For the approval of the proposal, at least 75% of creditors should give their consent to the agreement. If the agreement is approved, it is a new beginning in your life as it gives you an opportunity to repay debt according to your convenience and protect yourself from bankruptcy. Things can go worse, if the creditors disapprove the proposal that may lead you to file a petition for bankruptcy.
IVA attracts debtors as it has many attributes. It legally protects you from the creditors and freezes the increasing interest and charges. It allows you to delete your past from the credit report after six years if you sincerely follow the conditions of the agreement. Life is unpredictable; hence it is important to assess your financial condition yearly. You need to report the changes in your financial condition to your insolvency practitioner. If your financial condition improves or becomes worse, you must let your adviser know of it. But if you are determined and honestly repay all the contributions till five to six years, you can hope that you would be relieved about not paying the remaining debt amount. You can continue with your job if you are employed at a company as IVA does not affect your employment status. This helps you to repay your debts easily along with taking care of your family. In recent years, many applications have been filed for IVAs in England; this proves that many people are facing difficult challenges in repaying debt. With rising inflation and reduction of purchasing power, things become more difficult for debtors in dealing with the creditors. Hence, it is advisable that you should apply for IVA as soon as you feel that you would fail to meet with the debt obligations.