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Posts Tagged ‘Debt consolidation’
The actual Tricks of Consolidation
May 12th, 2012Advice For Getting Individual Voluntary Arrangements
January 20th, 2012Debt is a problem that can be very stressful. Some people may feel they have nobody to turn to. However you may not necessarily have to file for bankruptcy and you definitely want to avoid illegal money lenders. A good alternative to these options is an Individual Voluntary Arrangement or IVA (source).
An individual voluntary arrangement or IVA is an agreement that is formally reached between you and your creditors. It basically means that you agree to pay all or a portion of your debts over a period of time.
A individual voluntary arrangement or IVA is something that is arranged with the help of a third party. That third party should be suitably experienced and certified. Crucially you need to make sure they have been approved and authenticated either by an experienced solicitor or accountant.
As the name suggests these are not enforced by a court. They have to be agreed by the creditors. They need to believe that you will be able to repay the payments over a period of time.
You may wonder what the difference is between an IVA and filing for bankruptcy. One of the biggest differences is that if you are bankrupt you cannot negotiate what assets are involved in it. With an IVA there is more room for negotiation. It is also less likely that you will lose your job in this instance than you would if you had to file for bankruptcy.
An IVA is not necessarily appropriate for everyone. It is worth considering who is offering the arrangement. They should talk to you about what they feel is appropriate for your circumstances. You also need to be aware that you will need to be employment at this time and be able to show you can regularly pay off the agreed amounts each month.
In short you need to be sure that an individual voluntary agreement is appropriate for your circumstances. Therefore it is best to discuss this with an independent financial adviser. Asking around and comparing the different options available to you can help you get the best solution to difficult financial circumstances.
| Find Out If Individual Voluntary Arrangements Are Right For You |
| Debt is something that can be difficult to talk about. People often do not want to admit there is a problem and this can often make the problem worse. It is important to talk to someone about this who can do something about it so you can discuss the best solution to the problem as soon as possible. A good example of this is Individual Voluntary Arrangements. |
| An individual voluntary arrangement or IVA is an agreement that is formally reached between you and your creditors. It basically means that you agree to pay all or a portion of your debts over a period of time. |
| A individual voluntary arrangement or IVA is something that is arranged with the help of a third party. That third party should be suitably experienced and certified. Crucially you need to make sure they have been approved and authenticated either by an experienced solicitor or accountant. |
| As the name suggests these are not enforced by a court. They have to be agreed by the creditors. They need to believe that you will be able to repay the payments over a period of time. |
| You may wonder what the difference is between an IVA and filing for bankruptcy. One of the biggest differences is that if you are bankrupt you cannot negotiate what assets are involved in it. With an IVA there is more room for negotiation. It is also less likely that you will lose your job in this instance than you would if you had to file for bankruptcy. |
| An IVA is not necessarily appropriate for everyone. It is worth considering who is offering the arrangement. They should talk to you about what they feel is appropriate for your circumstances. You also need to be aware that you will need to be employment at this time and be able to show you can regularly pay off the agreed amounts each month. |
| In short you need to be sure that an individual voluntary agreement is appropriate for your circumstances. Therefore it is best to discuss this with an independent financial adviser. Asking around and comparing the different options available to you can help you get the best solution to difficult financial circumstances. |
Understanding CCJs In The UK
December 22nd, 2011A very large number of British residents are current finding themselves in financial difficulties. Often people have become “zombie debtors”, where they only have enough income to pay the interest on their debts, and therefore have no prospect of repaying the principal. Others make the mistake of borrowing more money, and get deeper into debt. If debtors default on payments they may be taken to court by the lender. These actions occur in the county courts, and the judgments handed down are referred to as County Court Judgments (CCJs). Failure to comply with CCJs in the UK can have severe consequences, and they should normally be treated as a high priority for payment.
Charitable and special interest groups working in the field of consumer debt have been reporting large increases in the number of people with significant levels of debt. Many people are now classed as “zombie debtors” – they only have enough spare income to repay interest on their debts, and therefore have no realistic prospect of ever becoming free from debt.
There are many different kinds of personal debt, and some types are more important than others. Money which is owed on credit and store cards, or has been borrowed from banks as personal loans, is usually unsecured. This contrasts to a secured debt, such as a mortgage.
Money owed as arrears of rent, or arrears on gas and electricity bills, are unsecured debts, but they must be treated very seriously as they could lead to eviction, or to having the gas or electricity disconnected. Similarly any fine from a court must be treated very seriously, as people can be imprisoned for failing to pay.
If a debtor is unable or unwilling to make repayments on a debt, then the creditor will take various steps to enforce payment. These will normally include sending letters asking for payment, sending a default notice, and possibly using a collection agency.
Action in the county court is usually a last resort for the lender, but it will happen if the borrower does not make any arrangements to pay. When a CCJ is obtained the court will specify a monthly installment which must be paid.
In the event of continued failure to pay, the court may issue a charging order, or an attachment of earnings order, or a warrant which can lead to a bailiff visit. In view of the seriousness of the situation, payment of a CCJ should normally be treated as a priority debt.
If you are facing a CCJ action, or are already the subject of one, it is obviously a very worrying situation. Organizations such as Citizens Advice can help out, investigating longer term debt solutions such as IVAs or DMPs. Creditors often will prefer to work with people in financial difficulties, if they make genuine attempts to repay as much as they can afford, rather than taking legal action in the county court.
