You have probably heard about it but you don’t know for sure how this could help you. It is very simple. IVA will help you to pay off your debts in less than five years! Moreover, you will have the benefit of legal protection, which means that, in this period, you won’t have to pay any interests or delay penalties.

 To take advantage of this individual voluntary agreement you only have to sign a formal agreement with your creditors. Through it, you will have the possibility to pay a percent of your debt in a determined period. IVA represents also the best solution for the ones that have too many debts and are trying to avoid bankruptcy and its negative effects.

Moreover, it is offering you a better handling of your debts and also the assurance that you won’t accumulate any more debts during your contract. IVA has no limits regarding debtors. It is addressed to a person that has a regular income and which, in the past, applied for loans and is not able to pay them off in the present. So, if you think that bankruptcy remained the only way out to get rid of debts, give it another thought! If you find yourself in this situation, IVA is the best debt solution for you. In a few words, signing these individual voluntary agreements means that your creditor will reduce the amount of money that you owe in change of your commitment to pay monthly a percentage of your income, during the next five years. The first thing that you have to do is to ask specialized advice.

Financial counselors will help you find the best creditor with the most appropriate conditions and criteria for your financial situation. They will present you the market offers and once you decided upon some, counselors will send your file to the lenders you selected. Once the IVA is signed, your debt will be reduced and monthly payments will start. So don’t follow the final solution of declaring yourself bankrupt.

Apply for individual voluntary agreement and provided you maintain payments – five years you will simply delete all your  unsecured debts!

The worldwide credit crunch has led to many people fearing unemployment or a drop in income. This means that many of us are finding that we are under increased pressure to become debt free and are finding our debts becoming more of a problem on a daily basis.

If you feel as though you are in this position where your debts are not affordable to you, you may have thought about declaring bankruptcy. But you can be debt free without bankruptcy as there are a number of ways you can manage your debts and deal with your financial situation, for example a Debt Management Plan or an IVA.

Bankruptcy means that an individual is unable to pay off any of their debts, often due to a low disposable income.

Declaring bankruptcy means that an individual may have to go to court to declare themselves bankrupt and pay the required fees. The summons will be issued and all your assets and income streams are examined. If suitable, you will be declared bankrupt, your creditors will be informed, and details will be placed in your local newspaper.

One of the main problems with using bankruptcy as a debt free option is that you will lose financial control, letting your trustee in charge of your assets and property who will likely sell these in order to repay some of the creditor debt.

Be Debt Free Without Bankruptcy

Bankruptcy does mean that you get a fresh start without having to worry about your debts but there are long term implications which cannot be avoided, which is why you may want to think about an alternate debt free solution:

Debt Management Plan: Informal agreement between you and your unsecured creditors where you agree to make one reduced monthly payment to cover all of your debt. The amount of time it take to be debt free without bankruptcy using a debt management plan is dependant on your circumstances, so please call now for further advice.

IVA: An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your unsecured creditors where you agree to make a set monthly payment and, on completion, your creditors will write off any unpaid debt. On average, you can be debt free without bankruptcy using an IVA in 60 months.

The right debt solution for you can only be determined through getting professional debt advice. Our debt free advisors can take details of your financial situation and help you find a more suitable debt solution – call now for more advice on how you can be debt free without bankruptcy.

Bankruptcy is a very public process; you will have to surrender control over your finances and be prepared to lose your home and other assets of value. Although bankruptcy allows you a way to be debt free in 12 months, this is not always true as a BRO could mean that you are repaying your bankruptcy debts for a much longer period of time.

Always seek expert advice before declaring bankruptcy or firmly deciding that bankruptcy is the only way to be debt free. There are a number of debt free solutions available which allows you to avoid some of the long term effects of bankruptcy, including:

Debt Management Plan – A Debt Management Plan is an informal arrangement with your creditors. On your behalf, we can negotiate a lower monthly payment that you need to make to your unsecured creditors. You make the monthly payment to us and we will distribute this between your creditors.

IVA – An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors where you agree to make set repayment for a typical period of 60 months. At the end of this arrangement, any unpaid debt will be automatically written off. With an IVA, many clients are often debt free in 60 months.

Remember, bankruptcy is not an agreeable option to become Debt Free for everyone so always consider your options. Speaking to a Debt Free advisor could help you understand what other options you have available which allow you to become debt free without going through the process of bankruptcy.