Every day in the UK, it’s estimated that an average of 390 adults become insolvent. This is in spite of hearing about the green shoots of recovery for a while now and the housing market is slowly showing signs of improvement. However, it’s understandable that the period of recovery may be drawn out by the number of people who lost their jobs and remain unemployed. In addition to this, there is also the damage to consumer confidence that’s stopping us all going out and spending like we did pre-recession.

Ultimately, the lesson to be learned here is that your financial situation can change very quickly and if you are in a precarious position, this can soon lead to severe debt problems. The recession cost a lot of people their jobs and if you suddenly lose your source of income, your outgoings still carry on regardless. You can very quickly find yourself in a position where your financial commitments are unmanageable and you’re facing the threat of bankruptcy. In this position, it can be all too easy to fall back on more credit and make your debt problem even worse.

There is a debt solution on the market for those who are facing severe debt problems, which allow you to avoid filing for bankruptcy. The Individual Voluntary Arrangement, or IVA, can be the ideal solution for those with unsecured debt amounting to more than £ 12,000. Of course, everyone’s route into debt is different and there is no quick-fix for your debt problem, but the right debt solution can help you to bring your debt repayments to a level which is you can manage. The IVA will allow you to make an affordable monthly payment for a fixed term, typically 60 months, and after successful completion of the IVA, any outstanding debt will be written off.

To see if an IVA would suit you, talk to a specialist IVA advisor right away and remember that Harrington Brooks are here to help.

Is a bad credit rating preventing you from getting the finance you need? Are you struggling with high levels of unaffordable debt? If so, you may find that a debt solution, such as an Individual Voluntary Arrangement, could prove to be the debt solution that you are looking for. Of course, a debt solution should not be viewed as a means of further extending your already stretched finances as you will not be borrowing any further money but instead making your existing debt more affordable.

However, so much of the modern world relies on the availability of credit; be it in the form of an overdraft at the bank, the mortgage on your home, the hire-purchase agreement on your washing machine or your credit card, and it can be tempting to fight debt by getting yourself into further debt in the hope of consolidation these into one smaller payment. The key to the control of your personal finance could be in the professional management of these credit streams and you don’t need a debt consolidation loan to do this.

Help with this is available from a number of outlets, you have the option of talking to a specialist debt advisor at Harrington Brooks, which is one of the longest established financial practices in the UK. Their online Debt Wizard can give you an outline of the debt solutions that would best suit your financial circumstances. Obviously, no two people will be facing exactly the same economic situation. They will be able to offer you insights into a personal debt solution that will hopefully help you to avoid bankruptcy.

The Individual Voluntary Arrangement, or IVA, is proving to be a popular alternative to a declaration of insolvency. This is a formal agreement between you and your creditors and it was first set out in the 1986 Insolvency Act. Its popularity has increased significantly in recent years though, as individuals have started to recognise it as a viable and attractive alternative to bankruptcy. The procedure is handled by an Insolvency Practitioner who brokers an agreement between you and your creditors. It hinges on 75% of your creditors (in terms of debt value) agreeing to a repayment schedule that will have you pay off a proportion of your total debt over a given period, usually 60 months. After this time, any remaining debt is written off. The percentage afforded to your creditors is determined by the amount that you owe to each of them.

An Individual Voluntary Arrangement has a number of key benefits over a declaration of bankruptcy. Firstly, it allows you to avoid the stigma associated with bankruptcy as it is not publicised in newspapers. Also, although you may have to relinquish some of the equity in your home, you will be able to hang on to it. For further information, please contact Harrington Brooks who will see if you qualify for an IVA which can help manage personal loan debts, outstanding credit card balances and other forms of unsecured debt amounting to over £12,000.

• First appearing in the 1986 Insolvency Act, the popularity of the Individual Voluntary Agreement (IVA) has soared in credit crunch Britain. However, due to the different legal systems, they are only available in England, Wales and Northern Ireland.

• IVAs are legally binding and must therefore be drawn up by a licensed insolvency practitioner and presented to creditors on behalf of the individual in debt.

• The result is that your creditors receive somewhere between 10p and 50p out of every pound that you owe. This depends upon the amount that you are able to repay and the value of any assets that you have at your disposal. When an agreement is reached, your creditors cannot add any further interest or charges.

• An IVA rests on a minimum of three quarters of your creditors (in terms of debt value) agreeing to the arrangement as such a high proportion of your debt can be written off. An IVA usually includes any unsecured debt, like outstanding credit card debt and your overdraft.

• An IVA is likely to take any equity in your house into account. In the vast majority of cases, your home will be safe from repossession but you may have to release some of the equity in your property to service the IVA.

• IVA’s are typically suited for those with a minimum of £15,000 of unsecured debt. They are a more attractive proposition than filing for bankruptcy as in the majority of cases, you can keep your home, the details of your IVA are not published and you retain a greater degree of control over your finances. Also, you are afforded greater freedom to conduct your business affairs.

To see if an IVA is the right debt solution to suit your circumstances, take the 15 second debt wizard at Harrington Brooks. You simply have to fill in a few details to see if you can reduce your monthly debt repayment and be debt free within just 60 months with an IVA.

Breaking the four minute mark is something that has been traditionally heralded as a bit of a triumph. Ever since Roger Bannister’s breaking of the four minute mile in 1954, it has become synonymous with accomplishment, a source of pride and a benchmark for achievement.

Well, there is nothing to be proud of in passing our latest four minute milestone. There is a declaration of insolvency every 3 minutes and 58 seconds. That’s some record; a first in British financial history. This translates to about 11,000 people being declared bankrupt or going into an IVA in the United Kingdom each month.

In the wake of global recession this perhaps doesn’t come as much of a surprise. Rates of insolvency, both bankruptcy and sequestration, have been rising gradually for a couple of years and there was an element of inevitability about the findings but this doesn’t stop it making for distressing reading. Particularly when we count the associated costs of bankruptcy and become aware of the alternatives. Bankruptcy is such a severe debt solution and borrowers should be conscious of the other options at their disposal.

Primarily, an Individual Voluntary Arrangement, or IVA, is a preferred method of tackling debt. Whereas a bankruptcy will tend to result in the loss of assets like your home, the IVA process will let you keep your house, even though it might be necessary to relinquish a proportion of the equity. This isn’t the only benefit that an IVA has over bankruptcy. Where bankruptcy is a matter of public record, published in your local newspaper, it’s possible to keep an IVA far more private. It will still be published on the Insolvency Service website but it won’t be in any newspapers.

The Individual Voluntary Arrangement came into being as part of the 1986 Insolvency Act and has recently become increasingly more popular as an alternative bankruptcy. Of course, any debt solution should be carefully researched to ensure that you are taking on the right option to suit your circumstances. The Harrington Brooks Debt Wizard is an excellent free resource in ascertaining the right course of action. In 15 seconds, it can give you an accurate breakdown of the alternatives to bankruptcy. Now, that’s a timeframe that you can be proud of.

An IVA is a legally binding contract between you and your creditors. It allows a person to make a formal proposal to settle a debt within a reasonable and fixed period of time. A licensed Insolvency Practitioner makes a proposal to your creditors and negotiates on your behalf. You just have to disclose all of your financials to them and they work out the terms for you. You make payments to the Insolvency Practitioner, which are based on what you can afford. The repayment period is 60 months and once you make your final payment, your outstanding debts are written off.

The key is to get advice that is specific to your financial circumstances. For example, if you don’t own any assets and are unemployed, then bankruptcy could be an option. If you are a professional, it might cost you your job though. A specialist debt advisor will be able to offer you assistance in making the right call. Take the free, 15 second debt wizard on the Harrington Brooks website and get impartial advice on the best course of debt help.

There are a number of points of distinction that are important to the individual involved when trying to decide between bankruptcy or an Individual Voluntary Arrangement. There are a number of points which make an IVA preferable to a declaration of bankruptcy. The primary attraction of an IVA over bankruptcy is the risk to your assets. The chances are, if you own your property, insolvency proceedings will put your home in serious danger of repossession. An IVA allows you to keep your house but it may require you to give up some of the equity you have in it to service your debt.

Further to this, the bankruptcy procedure is a public matter and there is a legal obligation to publicise the results of any insolvency in the local press. Also, you have an obligation to ensure that banks and other interested parties are made aware of it too. IVA’s are more private, only being published on the Insolvency Service’s website.

Naturally, setting up an IVA hinges on you having the ability to service some proportion of your debt. In order for three quarters of your creditors, the minimum proportion required to attain an IVA, to accept the terms of the agreement, you will have to demonstrate your ability to meet the repayment schedule. This creditor percentage is determined by value of debt rather than head-count. This means that if one creditor is owed 30% of your total debt, they have the power to veto the arrangement. Creditors can put forward changes to the proposal but there is no obligation to accept these. Interest rates will be frozen and your creditors will be forbidden from making additional charges.