When a person’s debts spiral out of control and they need debt help, there isn’t an one-size-fits-all procedure. Depending on their individual circumstances, involving the amount that they owe, their level of income in addition to other factors, they might want to consider an Individual Voluntary Arrangement (IVA), a Debt Management Plan (DMP), a Debt Relief Order or Bankruptcy.
With IVAs especially, there are people regularly asking the question “how does an IVA work?”
If an individual in debt isn’t sure which course of action is best for them, then the first thing to do should be to get hold of a debt advisor, who should be able to point out whether an IVA or another kind of debt settlement is right for the individual, depending on their specific situation regarding their debt. If a person owes more than ?15k to more than one creditor and has sizeable assets (e.g. a house) then an IVA may be a good idea for them – otherwise, if this is not the case, the advisor should advise an alternative option. Read more