Individual Voluntary Arrangements- A New Alternative to Bankruptcy

This May, the Department of Trade and Industry in the UK found that there were 10,091 bankruptcies in the first quarter of 2005. This represents an increase of 24.5% on the corresponding quarter of last year.

Bankruptcy can leave an individual feeling ashamed, depressed and out of control. Furthermore, for many the stigma of bankruptcy can be too much to bear.

However, there may be an alternative to going bankrupt which can also help people in serious debt to make a fresh start.

The Insolvency Act of 1986 introduced The Individual Voluntary Arrangement (also known as an IVA) as an alternative to bankruptcy.

The idea behind the introduction of the Individual Voluntary Arrangement was to enable people facing financial difficulties to come to a formal agreement with their creditors rather than having to face bankruptcy. If an IVA is agreed between the debtor and creditor:

  • Interest on the loan is frozen
  • Legal proceedings are stopped
  • The overall debt is reduced

An Individual Voluntary Arrangement is generally seen as a more favorable option than bankruptcy from both the debtor's and creditor's perspective. This is because there are no fees or legal proceeding involved with an IVA, unlike with bankruptcy. Furthermore, from the creditor's point of view, an Individual Voluntary Arrangement offers a greater repayment of the debt than would otherwise be achieved if the debtor were made bankrupt.

IVAs represent an exciting new opportunity to those facing serious debt to both avoid bankruptcy and to make a fresh start.

Mike Curry is the head of Clear Start- a free national support service for those facing serious debt. Clear Start offers independent advice on debt management and individual voluntary arrangements. For more information please visit Clear Start.org

In The News:

Gulf Times
Ivory Coast could get debt relief mid-2009 - World Bank
Reuters South Africa, South Africa - 21 hours ago
This is Ivory Coast's third attempt at HIPC debt relief. According to Economy and Finance Minister Charles Diby Koffi, external debt repayments amount to ...
W. Bank says Ivorian aid tied to cleaning up cocoa Reuters South Africa
all 11 news articles

BBC News
Progress seen in debt relief for poor countries
Pakistan Dawn, Pakistan - Sep 4, 2008
By Masood Haider UNITED NATIONS, Sept 4: A new UN report finds significant progress in providing debt relief to the world’s poorest countries. ...
Poverty-reduction aid lags, study finds Los Angeles Times
DEVELOPMENT: UN Warns of Faltering Goals on Aid, Trade IPS
Donors’ Aid to Poor Nations Declines, UN Reports New York Times
UN News Centre - Reuters South Africaall 184 news articles

Hurricane Relief Efforts Create Red Cross Debt, Nonprofit Says
Washington Post, United States - Sep 5, 2008
By Philip Rucker The American Red Cross said this morning it is going deep into debt to fund a $70 million Hurricane Gustav relief effort, ...

Handloom weavers may get debt relief
Business Standard, India - Sep 2, 2008
After the debt waiver scheme for farmers, the Union government is hoping to extend a similar scheme for handloom weavers. The Union textiles ministry, ...

Bankruptcy lawyers can advise clients on debt-court
Reuters - Sep 5, 2008
The amendment in dispute prohibits debt-relief agencies from giving clients advice about taking on more debt before filing for creditor protection. ...
8th Circuit: Bankruptcy Provision Violates Lawyer Free Speech Rights ABA Journal
all 5 news articles

Gene F. Turnwald: Debt relief might be less than it promises
Lansing State Journal, MI - Sep 2, 2008
I ask you to please keep that in mind when dealing with debt relief companies that guarantee to lower your credit card or loan payments and interest rates. ...

Justices fault part of 2005 debt law
Arkansas Democrat Gazette, AR - 22 hours ago
“The threat of being labeled as a debt-relief agency has curbed or chilled big firms from doing pro bono work for people” who need bankruptcy, Henry Kaim, ...

Group advocates tax increases and non-user fees for sewer debt relief
The Birmingham News - al.com, AL - Aug 29, 2008
At a morning press conference, the group put forward "the people's plan," an 11-point proposal for dealing with the debt. The activists, including a ...

Staying On Track with Your Debt Relief Plan
3x24 - Your Newspaper and News Magazine, Germany - Aug 29, 2008
All these things, however, pale in comparison with the importance of sticking to and staying focused on your debt relief plan. Sticking with a debt relief ...
4 Simple Steps To Getting Rid Of Credit Card Debt 3x24 - Your Newspaper and News Magazine
Settling Credit Card Debt: Choosing the Right Words 3x24 - Your Newspaper and News Magazine
all 3 news articles

Canada Bonds Gain as Economic Slowdown Drives Investors to Debt
Bloomberg - 17 hours ago
``Technically no recession, but no relief from fairly sluggish growth either,'' said Craig Wright, chief economist at Royal Bank of Canada in Toronto, ...
debt relief - Google News


Ebooks, Scripts, Websites, and more...

Adsense websites

Yes to Less Debt

Feeling stressed by the amount of debts you have? Three... Read More

Debt Collectors; And what you can do to Get Them Out of your Life

FTC opinion letter on validation Section 809(a) of the FDCPA,... Read More

British Families and Debt

There is current concern from the Bank of England that... Read More

Debt Management - Is It the Right Choice For You?

Debt Management plans offer credit counseling clients a different and... Read More

Dont Let The Good Times Bury You

It is vital to get rid of debt while things... Read More

The Last Debt Solution Should Be Bankruptcy

A debt solution like bankruptcy should really only be used... Read More

Debt Elimination 3

Planning To Achieve Debt EliminationOnce you have started the process... Read More

You Can Make Financial Resolutions Anytime

The New Year often brings with it a desire to... Read More

Going Bankrupt in the World

It all starts by defaulting on an obligation: Money owed... Read More

Save Money When Going Out

It seems as though whenever we go out for the... Read More

Solutions to Single Mothers in Debt

As a single mother, lets admit it, times get tough.... Read More

Free Quick and Easy Money Saving Tips ? Part 1

With the high cost of gasoline and the amount of... Read More

Ten Ways to Get Out of Debt

1) Use your AssetsIf you have assets with some significant... Read More

Debt Elimination Is The Key to Financial Freedom

If you want financial freedom, the first thing that you... Read More

The ONE Law You Should Be Breaking

There is a law all smart people break.Parkinson's law.Parkinson's law... Read More

A Debt Elimination Process Must Be Initiated From You.

The first and maybe most important step in a debt... Read More

What You Should Know About Bankruptcy

Filing bankruptcy is not only a last resort legal action;... Read More

How to Become Debt Free

In today's consumer society it is all too easy to... Read More

Credit And Debt Relief--A One Stop Solution

Amy Wright, 34, was extatic when her realtor showed her... Read More

Bankruptcy Interest Increases as Deadline Approaches

Congress recently passed sweeping legislation that will significantly reform American... Read More

The Effects of Consumer Debt

Consumer Borrowing Consumer borrowing in the UK has now crashed... Read More

Personal Bankruptcy ? If Its Unavoidable, File Now

The Bankruptcy Abuse and Consumer Protection Act, signed into law... Read More

Your Ticket Out of Debt Relief

If you are in debt over your head and wondering... Read More

New Bankruptcy Law Will Not Protect You from Identity Theft

Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More

Senate Passes New Bankruptcy Law

The United States Senate passed a law on March 10,... Read More