Debt Help – Whats Available
For more IVA information and advice visit http://www.ivaforum.org.uk/
There are various types of debt help available, all of them designed to help people dealing with different kinds of debt problems.
If you are in debt, you may find that seeking professional debt help is the best way forward. Here’s a look at what ‘debt help’ might mean (just two examples).
Debt advice
Debt advice may be all you need to help you get out of debt. Debt advice is available from many places and is often offered for free.
If you contact a professional debt adviser, they should be able to offer you tips on a range of things – for example, advice on how to negotiate successfully with creditors, tips on prioritising your debts, or guidance on how to budget more effectively.
They should also be able to assess your situation and let you know if they think you require a specific debt solution – and if you do, which one.
IVA (Individual Voluntary Arrangement)
In some cases, your debt adviser may conclude that an IVA (Individual Voluntary Arrangement) is the best way for you to clear your debts.
If you are struggling with an unmanageable level of unsecured debt that you can’t afford to repay within a reasonable amount of time – but that you can afford to make reduced monthly payments towards – an IVA may be suitable for you, allowing you to repay what you can afford and write off the rest.
If, after seeking professional debt advice, you find that an IVA is right for you and you decide to enter one, you will work with your IP (Insolvency Practitioner) to draw up an IVA proposal, which lays down how you propose to repay your lenders.
Before the agreement can begin, voting creditors who collectively own ‘75%’ or more of your debt would have to agree to the terms proposed by you and your IP in this IVA proposal.
If this happens, the IVA will become legally binding. In most cases, you would begin making your monthly payments, and this would go on for 5 years. If you are a homeowner, you may be required to release some of the equity in your property half way through the final year of the agreement, so you can repay more of your debt.
Once the IVA has come to a successful conclusion, any remaining unsecured debt will be written off. The IVA will then remain on your credit report for one year, which could affect the cost and/or availability of credit for this time.
Most of the services reviewed by this website are available or may be accessed from Australia (see 