IVA Alternatives – Choose The Best
If you do not wish to opt for an IVA, you can have a look at the IVA alternatives. This will help you choose from the various options.
If an IVA is not for you then you do have alternatives:
1. Debt Management
This is a more informal way to deal with your debts. We can still negotiate a lower monthly payment with your creditors and we can usually get interest frozen or reduced. You may choose this method if you don't qualify for an IVA or prefer not to enter into a legally binding contract over 5 years. However, you will still be expected to pay off all of the debt and the creditors will still maintain regular contact with you. If you would like to apply for debt management then click here.
2. Secured Loan / Re-Mortgage
An IVA will be recorded on your credit file meaning this will affect your credit rating. If you would prefer to avoid this and you are a homeowner, then you can apply for a secured loan or a remortgage. If you would like some advice on this then please click here.
3. Can I arrange something myself ?
You may feel that you can take on the creditors yourself. This can be very time consuming and frustrating though especially if you don't the processes involved or the related laws. We would only advise this route if you were experienced in such matters.
4. Bankruptcy
In some cases, bankruptcy may be the best option e.g. you cannot afford to make reasonable repayments. This is a serious step though, as your accommodation and job may be at risk.
An IVA is a true alternative to bankruptcy. An Insolvency Practitioner (IP) is responsible for liaising with your various creditors to help work out terms in your favor and ensure that you adhere to the agreed payment amount.
If you're considering a personal bankruptcy UK legislation has made it more beneficial than you might have previously imagined. You can compare IVA alternatives before opting for an IVA. |
