Thursday 21st August 2008
People with unmanageable levels of personal debt may find the best solution to their problem is an individual voluntary arrangement (IVA), one spokesperson has said.
According to a spokesperson for DebtAdvisersDirect.co.uk, an IVA is a form of debt management which means consumers do not have to declare they bankrupt.
The representative added this type of solution does not address mortgage arrears and other forms of secured debt, it can prove a useful tool in reducing payments to unsecured creditors.
As a result it could help cut monthly outgoings which may in turn be used to cope with home loan repayments.
"Depending on the individual's circumstances, the best debt solution could be an IVA. As a form of insolvency that helps people clear significant debts without resorting to bankruptcy, an IVA can be an attractive way of reducing their monthly expenditure," the spokesperson said.
The representative went on to add those who feel the need to adopt a debt management solution should consult with a qualified professional before deciding which course of action to take.
Earlier this year, the UK Insolvency Helpline claimed there were 598 IVA applications made in May, of which 543 were acceptable.
Source: http://www.debtmanagementtoday.co.uk/
