Your Debt Problem Solved Without Losing Your Home
Does this sound familiar?
You’re defeated by all your debts, and you can see no other way out but to file for bankruptcy. You must now say goodbye to all your things and hope that it will be enough to cover all your debts. Your holdings include the family home, which you are now likely to lose. Are you in this plight right at this moment?
Before you jump to any sudden decisions, you have to be certain that bankruptcy is right for you. What you may not know is that you can possibly qualify for other programs created for debt cases. Do a little research to find out who you can ask advice from about your debt problem. There are both paid debt advice services and charity associations who can help you figure out what your options are.
Individual Voluntary Arrangements, or more commonly called an IVA, are a great alternative to filing for bankruptcy. It is a legally binding agreement between yourself and your creditors regarding the fulfillment of your debt, as overseen by someone acting on your behalf such as an Insolvency Practitioner (or IP for short). Your proposal must contain a workable payment scheme for your creditors after taking some points into consideration, such as your monthly income, living expenses, and other pertinent facts, which most of your creditors must ratify in order for the IVA to push through. Any creditor may set or add their own conditions to the plan before it is voted upon. When it has been approved by majority of the creditors, it is up to you to remain faithful to the scheme’s terms.
Here are some positives about IVAs that you should consider:
Similar to bankruptcy protection, getting an IVA will keep lenders from suing you for payment without the court’s approval. But please take note that this only covers the creditors you listed down in your IVA petition, so be thorough when making that list.
If you file for bankruptcy, everything you have will be taken into consideration and sold, and the sale amount will go towards your debts. For IVAs, your assets will be left alone and you can keep your home.
Many people hesitate to file for bankruptcy because of the perceived disgrace of doing so, as a list of filers is published on a national newspaper, whereas IVA filers are only listed on the Personal Insolvency Register. While the fact that you have filed for an IVA is not kept secret from the public, there is a feeling of being less subject to awful rumors.
While there is no promise that your credit score will not be affected by having an IVA, it does show a willingness to pay back the sum you owe. You and your lenders must agree on some sort of fixed payment terms, lasting anytime from three to five years. This will be paid monthly to the lenders as overseen by your chosen debt advisor.
