Amnesty declared for debtors
Article Category: IVA (Individual Voluntary Arrangement)
An ‘amnesty’ between banks and the sellers of formal debt means that some hard-pressed borrowers will find it easier to pay off their loans thanks to a resolution of an on-going row in the debt management industry.
People who are unable to pay off debts but are unwilling to file for bankruptcy and may have previously found it difficult to find a payment plan may now have a better chance of being accepted for an individual voluntary arrangement (IVA).
This is an alternative to bankruptcy and allows people with debts to agree to a formal five-year deal of fixed repayments with their creditors, in return for paying less than their original loans.
Derek Oakley, the insolvency director of Debt Free Direct, told the thisismoney.co.uk website: "All this does is tighten up and simplify what’s already in place.
"I’m not sure we will be forwarding more people for an IVA, but this means that more people should be accepted and less will have to resort to bankruptcy."
The typical amount owed on an IVA, according to comparison website IVA.com, now stands at an average of £50,000 per debtor.
For more information abour IVAs call our advisors on 08000 122 118 for FREE, no obligation help and advice.
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