Do you have personal debt? Consider an IVA to clear debt.

A major new report published today by Government The UK Insolvency Helpline Debt Advice Service has concluded that people with personal debt problems must make more use of free services to stop them losing going bankrupt. One resource is a fully funded website called insolvencyhelpline.co.uk

The research, carried out by the social policy team at The UK Insolvency Helpline Debt Advice Service which looked at hundreds of cases in the the UK, found that only around half of households facing debt problems took impartial debt advice.

More and more normal families were seeing their debts 'spiral out of control'. In the past it was just 'problem borrowers' who found themselves in the position. There are people with unsecured debts, not including mortgages, of between £20,000 to £30,000 who could avoid bankruptcy by looking at an IVA.

The typical IVA criteria required to accept an IVA are now the following:

Debts greater than £15,000

3 or more creditors. This can not be three debts to the same bank such as Barclaycard visa, Barclay Loan and Barclay's overdraft. The Criteria required to accept an IVA must be separate institutions.

Disposable income over £200 per month, assets to release or a 3rd party to contribute into the arrangement.
You must be able to pay creditors at least a 25 pence in the pound dividend. Many IVA cases fail because applicants can not afford to make a decent monthly payment.

You should have a regular income stream. Those who have some good months and some bad months will have to make sure they can make a regular payment. Some IVA cases fail because applicant's income is irregular or unreliable.

Applicants must be able to show they have allowed for reasonable necessary living expenses such food, utilities, travel costs, council tax etc. Creditors are constantly criticising those who state too much or too little for food. Some IVA cases fail because applicants spend too much on car hire purchase payments.

IVA The UK Insolvency Helpline Debt Advice Service is is a service for people with debt problems. The service also operates teams of outreach debt advice workers nationally across the UK. The service is free, confidential and independent. The service can also assist callers with the setting up of Individual Voluntary Arrangements (IVA) Debt Management Plans and Bankruptcy. Call 0800 074 6918 or log onto www.insolvencyhelpline.co.uk for advice.