Debt is a widespread problem today which is affecting businesses and individuals alike. When a person or organisation is in the mire of insolvency escape can seem impossible, but there are ways out, including individual voluntary arrangements or IVA.
Troubled times
It doesn’t take a financial wizard to see that the economies of numerous countries are struggling at the moment. The UK, the US and many European countries are in dire straits and this economic difficulty is filtering through societies, affecting many people inhabiting these nations. In such troubled times it is easy to fall into debt or greater debt, but thankfully there are ways to get back to solvency.
Potential ways to escape debt
There are a number of options open to people struggling with debt. At the most dramatic end of the scale there is bankruptcy, which will wipe out debts but also mean that someone can’t borrow money for years afterwards. Another option that dramatically reduces debt without the future limitations of bankruptcy is an IVA.
IVAs – what you need to know
An IVA is a formal repayment proposal to creditors, with which a debtor attempts to agree to repay reduced sums. A creditor is likely to agree to an IVA as they will often receive more money back than if the debtor becomes bankrupt.
IVAs were initially designed to provide relief to businesses that fall into spiralling debt, but as consumer debt is increasing today more and more individuals are proposing IVAs. There are subsequently a large number of firms offering IVA services, but it pays to do some research here to find the most suitable company on the market.
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