If you can’t afford to repay everything that you own in debt, then you may be able to write off a portion of it by declaring yourself insolvent. There’s three main ways that this can be done, one is by entering an IVA for example. However, an IVA is just one of three kinds of insolvency, and all three will ensure that you’re debt free in no time. You can write off your debt through declaring yourself bankruptcy, so you’ll basically hand over control of just about all your assets, including your property, money, shares etc, to an Official Receiver, who’ll make sure each creditor gets a fair share of what you own. In return, they’ll write off your outstanding debt, and you’ll be back in the black.
If you don’t think bankruptcy if the right route for you to go down, then you may want to look into entering an IVA. With an IVA, you can clear your debts, reduce your monthly payments and protect your home at the same time. The standard IVA usually gives you five years to pay your creditors as much as you can afford every month (once you’ve accounted for essentials such as rent/mortgage, utility bills, petrol costs, etc), and after the five years is up, the creditors will write off anything you still owe. So, an IVA can work well for both you, and the people you owe, and what’s more, you’ll avoid the consequences of bankruptcy. The third way to write off debt, is through a Debt Relief Order (DRO). Debt Relief Orders were introduced in April 2009 to help people who couldn’t write off debt through bankruptcy or IVA. A DRO costs only £90 to enter and doesn’t require regular payments. However, it’s only appropriate for those with very specific circumstances – people who owe less than £15,000 for example, those who don’t own a home, and those who have virtually no assets or disposable income. Ivaadvisorycentre.co.uk can help with your financial troubles, and start the ball rolling on any one of the possible routes to a debt free life. Get debt help today, with Iva Advisory Centre.
