- SIVAs will offer a simple alternative to IVAs.
- The number of creditors that must agree to a SIVA is lower than a traditional IVA, so more are likely to be approved.
- This should make the IVA system more accessible to the public.
What is a SIVA?
Due to increasing levels of debt in the UK there has been a dramatic rise in the numbers of people applying for IVAs. This has led the government to review the system nationally. Simple Individual Voluntary Arrangements or SIVAs are planned for 2007 and are intended to simplify the whole IVA process.
Currently an IVA can be agreed if it is approved by creditors representing 75% of the debt amount, under the SIVA scheme this would be reduced to 51% for applicants who owe in excess of £25,000. In addition a simpler IVA application process and contract will be implemented. This should ultimately help more people become debt free as quickly and easily as possible.
"Initially I applied for a loan to consolidate my debts. However, after speaking to one of your advisors, it became clear that a far better solution would be to go on one of your financial management plans...
Everything was made so simple and the continual support and advice you have provided from my initial enquiry and whilst on my financial management plan has resulted in my debts nearly being clear now! I can't thank you enough for your help."
Janet N, Birmingham
