Archive for February, 2010

There’s IVA advice and then there’s IVA advice

Friday, February 26th, 2010

Individual Voluntary Arrangements (IVA) are an increasingly popular form of debt management. In fact the number of people choosing to go down the IVA path leapt a massive 20% in 2009, as those struggling with their debts opted to try and avoid full-blown bankruptcy and instead take advantage of the more flexible IVA route.

If you have run into financial problems and are finding that despite your best efforts the debts are starting to mount and it’s becoming ever more difficult to make ends meet, then perhaps an IVA is the way forward for you. The best way to know for sure is to take properly qualified and truly independent debt management advice.

There are certainly plenty of organisations out there offering help. A quick search just on Google will return a bewildering number of options. If you are seeking IVA advice or advice on the Scottish equivalent Protected Trust Deeds, then do take care that you are getting the best impartial guidance possible.

The sorts of things you should be looking at include whether you might be entitled to an IVA in the first place. As IVAs tend to be most appropriate to people in serious debt owing in excess of £15,000 and struggling to meet repayments, then it may be an unnecessary step for you to take. There are a variety of possible debt management solutions; debt consolidation for example might be a better option. It all depends on your particular circumstances, the amounts you owe, who you owe them to and your ability to come to a mutually acceptable payment arrangement and stick to it. You can only really get to the bottom of things by talking with impartial debt management experts.

If you do decide that an Individual Voluntary Arrangement is the best way forward then the obvious next questions are – who is the most suitable IVA provider? And how do you go about setting it up?

Again, what you really need is trained, experienced independent advice to guide you in the direction of the most appropriate debt solution from the most a reputable and reliable provider.

Don’t rush into things, take your time and make sure you get the advice you need.

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How a Protected Trust Deed can help you with your debt problems

Wednesday, February 24th, 2010

If you live in Scotland and have run into financial difficulties then help may be at hand in the form of a Protected Trust Deed, also known as a Scottish PTD. The Scottish equivalent of IVAs (Individual Voluntary Arrangements) which are increasingly popular south of the border. A Protected Trust Deed enables you to repay your debt over an agreed period of time at a set monthly or weekly amount that you have budgeted for and can maintain without mounting up further problems. Once the agreed repayment term has expired the Protected Trust Deed ends and any remaining unpaid debt is written off.

The consensus of Trust Deed Advice

For those seeking debt repayment and debt management advice the trust deed advice from most experts and professionals is that if you qualify and can avoid bankruptcy by having access to the funds that allow you to maintain regular repayments, then taking out an IVA or Scottish PTD is without doubt the preferable option. Indeed, a large proportion of the additional insolvencies throughout England and Wales during the final quarter of 2009 took the form of IVAs (Individual voluntary arrangements), a figure which leapt over 20% to 47,641 for the whole year.

While in England and Wales IVAs tend to run for five years (60 months), in Scotland the maximum duration of a Protected Trust Deed is three years. That’s right – you can be debt free in just three years and what’s more once your agreement is set up, that’s it. Your creditors are not able to take any further action against you and are also unable to add any additional interest to the amount owed. In addition, you are shielded from your creditors as during that period your trustee assumes the responsibility of dealing with all creditor correspondence, and unlike bankruptcy the action is not made public. You are spared the embarrassment of having your financial misfortunes printed in the local press and in most cases you will still be able to hold certain public offices, remain self-employed and continue to serve as a company director – all of which you would be denied under sequestration (bankruptcy).
Do you qualify for a Protected Trust Deed? Talk to a debt management expert to find out.

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Why are so many people turning to the Citizen Advice Bureau (CAB) for help?

Monday, February 22nd, 2010

The simple answer? For no-nonsense, common sense debt advice.

The recession has had a devastating effect on both business and personal finances across the country. Workforces have shrunk (at the height of the downturn as many as 3,000 people a day were being laid off) and up to 50,000 companies and 150,000 people became insolvent during 2009. One organisation that has experienced record amounts of work during these toughest of times has been the Citizens Advice Bureau.

UK householders and businesses in their thousands have turned to the Citizen Advice Bureau for help and guidance on how best to manage their debt. Debt advice, it would seem, has been one of the very few growth industries in these torrid times.

Reflecting on official Government debt advice; the sort of common sense help offered by the Citizen Advice Bureau includes their 10-point recession-beating Citizens Advice guide:

  • Don’t bury your head in the sand. If you have a financial problem face up to it and start dealing with it as soon as possible.
  • Take informed, independent advice.
  • Pay priority debts first.
  • Budget and plan.
  • Look hard for savings on all your bills.
  • Check to see whether you are entitled for benefits.
  • Whilst debt consolidation can be a good idea, don’t jump out of the frying pan and into the fire with exorbitant loan interest rates.
  • If you have mortgage issues take advice and deal with them quickly.
  • If you lose your job be sure to check your legal rights.
  • A property in the UK is repossessed every 11.2 minutes. Don’t become just another homeless statistic. If you lose your home or your home is under threat you may be entitled to help.

Over the years, Citizens Advice has established a formidable reputation as the ‘people’s champion’. What the CAB doesn’t know about debt management isn’t worth knowing. When it comes to the Citizens Advice Bureau, UK consumers can count themselves very fortunate. Armed with their expert, impartial advice you can begin the important job of getting your debt under control and you finances back into shape.

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Take expert advice on bankruptcy to know exactly where you stand

Thursday, February 18th, 2010

The length and depth of Britain’s recession over the last two years has challenged even the most successful of companies as well as the most carefully managed household budgets. As a consequence, bankruptcy in the UK has rocketed. In 2009 just short of 80,000 individuals were declared bankrupt. Company failures totalled around 50,000 – up significantly on 2008. No wonder so many people are seeking advice on bankruptcy.

What’s more, experts predict that with so many people and organisations already at borrowing limits, already rationalised and having over the last couple of years, pulled together all the available cash they could get their hands on, things may well get worse before they improve. With the banks reluctant to lend, even good businesses – profitable, well-run companies with skilled people and great ideas – are falling by the wayside.

All for the sake of cash. Cash flow – or rather the lack of cash flow is a major factor in taking many companies and individuals to the point of bankruptcy.

Advice from the experts is that, though the natural inclination when things aren’t going well is to sometimes stick your head in the sand and pretend it’s all ok, just thinking that your financial problems will disappear of their own accord is folly. Don’t kid yourself. If things have got out of control, not only do you need a reality check you also need some independent and professional bankruptcy advice.

Realise too that bankruptcy in the UK isn’t the end of the world. Whilst you may have to give up your assets and even your home, as well as have financial restrictions imposed, such as the ability to obtain credit, often a bankrupt can be discharged and freed from debt liability in only a year.

In some cases there may be other less restrictive options such as IVAs (Individual Voluntary Arrangements) or (in the case of smaller debts) Debt Relief Orders that may be more suitable. If you really have run out of cash though and can’t see anyway of raising it to pay off your creditors then bankruptcy may be your best choice.

For all the latest rulings, legislation and advice on bankruptcy UK, consumers have a whole range of agencies ready and willing to offer the necessary guidance. Make sure you take the proper professional advice you need.

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Are you looking for Debt Advice, UK financial management regulation information or other financial guidance? Then you are not alone.

Tuesday, February 16th, 2010

With the average household now on the increase and individuals in the red to the sum of over £30,000 per person on average, personal debt in the UK now totals £1,500 billion. Every day a massive £200 million needs to be found just to service interest payments. It’s not just British business and individuals who have racked up debt. The UK Government too has borrowed extensively and is in debt to the tune of £800 billion – an unimaginable amount that increases at an eye-watering rate of £4,385 a second.

No wonder that debt advisors and professionals skilled at setting up debt management programs are in such high demand.. UK consumer rights organisation the Citizen Advice Bureau says its debt advisors are dealing with over 9,000 new debt management advice enquiries every day.

In many ways these people are the fortunate ones. Those that have realised that they may need help, are already seeking debt management programs and are on the path to dealing with and managing their financial problems.

For people who either fail to appreciate the realities of their financial situation or simply choose to ignore what’s going on, a real and present danger exists that debt will start to spiral out of control. Without careful handling a vicious circle of debt is created and you can find yourself forever playing catch up – robbing Peter to pay Paul.

In the long run the chances are that they will be forced to seek debt help anyway. Grasping the debt nettle before things get too out of hand can save you a great deal of time, anxiety AND cash. It will also open up more flexible, less restrictive debt management options such as IVAs or Debt Relief Orders – preferable to bankruptcy for many people.

Are you looking for debt advice? UK consumers have a wide range of organisations to turn to. Make sure that if you feel you need some guidance that you seek out expert, independent advice and start getting to grips with your debt as soon as possible.

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Insolvency Figures at Record High Levels

Thursday, February 11th, 2010

The UK’s 4th Quarter insolvency figures were released last week and on the whole make for grim reading. The recession has clearly had and is continuing to have a deep and sustained impact, especially upon individuals, with no obvious end to the trauma in sight.

According to the Insolvency Service a total of 35,574 people in England and Wales were declared insolvent in the final three months of the year. This represents a rise of nearly 25% on the same period in 2008 – a record Q4 high contributing to an overall annual figure of 134,142, well above the previous 2006 high of 107,288.

A breakdown of the figures reveals that, of those seeking a formal arrangement with their creditors, by far the largest increase came in the number of IVAs (Individual voluntary arrangements), which leapt over 20% to 47,641 for the year. Considered by many as a preferable arrangement to bankruptcy, IVAs allow debtors and creditors to agree on a repayment plan over a set length of time (usually 60 months). They come with fewer restrictions and outstanding amounts are usually written off at the end of the repayment period.

When it came to full-blown bankruptcy, Q4 figures show a 7% fall on Q3. A total of 74,670 individuals were declared bankrupt over the year, a rise of nearly 11% on 2008’s figure.

Recently introduced DROs (Debt Relief Orders) took account of 11,812 insolvencies. DROs came into play from April 2009 and are eligible to borrowers with debts of less than £15,000 and only minimal assets. It’s expected that as more people become aware of DROs so their popularity will increase.

There was slightly better news for business during the 4th Quarter. Although throughout the year figures show that there was a 23% rise in business insolvencies on 2008, the 4th Quarter numbers of 4,566 actually represents a fall of 2% on Q3 and a 1% fall on the previous year.

With experts predicting that insolvencies are likely to rise even further in 2010 it seems that, especially for individuals, things may get measurably worse before they get any better.

Whatever happens though, the advice remains the same. If you find, for whatever reason, that you are living beyond your means and starting to accumulate debt don’t wait until it’s too late before seeking help. There’s plenty of professional debt advice out there – seek it and save yourself a whole load of trouble over the long run.

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When it comes to debt management UK consumers have a range of options that can help

Wednesday, February 10th, 2010

Have you found yourself in the position where every week or every month the cash coming in simply refuses to add up to the cash going out? Feel like you could do with some debt advice? You’re not alone. As the recession drags on, many debt advice organisations are becoming inundated with requests for information, specifically on debt management. The Citizens Advice Bureau alone now deals with somewhere approaching 10,000 queries a day.

With the average amount owed by every UK adult (including mortgages) standing at £30,226 – that’s 133% of average earnings – it’s little wonder that it feels like you have to run just to stand still.

Often through no fault of their own people are finding that what at first seemed an almost insignificant debt on a credit card or bank overdraft has started to take on a life of its own and slowly spiral out of control. As people have been laid off, overtime cut and wage rises put on hold, so to has the pressure of maintaining a positive bank balance along with keeping on top of monthly repayments.. Some people have inevitably slipped into the red.

Once on the wrong side of the line the big question of course is how to break the circle? What are your options when it comes to debt management?

UK consumers have a number of choices.

• You can look at consolidating your debt by pulling it all together into one loan.
• IVAs (Individual Voluntary Arrangements) – a legal agreement between you and your creditors about how you’ll pay off your debts.
• If you have at least one County Court Judgement against you and debts of less than £5000 you can apply for an Administration Order.
• If you are on a low income and have debts of less than £15000 you could apply for a Debt Relief Order.
• You could declare yourself bankrupt. Bankruptcy can be an involved process and for some might not be the best form of debt management.

Whatever your situation, get someone who is experienced and expert in dealing with debt to advise you on how best to handle your individual debt management. There’s certainly plenty of good quality information available.

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Considering the benefits of an IVA? UK debt management for UK business AND individuals

Friday, February 5th, 2010

If anyone finds themselves in debt then without doubt the single best piece of advice anyone can receive is that they should face up to the reality of the situation. It’s vital to take stock of exactly where you stand, to start making arrangements and to tackle the problem before things deteriorate further.

Sure, it’s never nice to have to face up to your financial demons and it’s common for people to feel a little embarrassed or reticent about starting on the path to financial recovery. Don’t let misfortune or mistakes in the past ruin your future. Take professional advice and get to grips with things as soon as possible.

What about an IVA?

UK financial authorities introduced IVAs in 1996 as a formal and legally binding agreement made between a debtor and creditors under which the debts are frozen. More flexible and less onerous than bankruptcy, if you have debts of more than £15,000, a regular income and can budget to make monthly repayments (usually over 5 years) then IVA companies in England or Wales may have just what you need.

In Scotland an equivalent to the IVA is known as a Protected Trust Deed.

They certainly seem to be proving a popular option. Though IVA advice was originally only offered to small businesses that got into financial difficulties and wanted to avoid bankruptcy, they have proved increasingly popular with individuals. In 2009 around 50,000 people entered into an IVA. UK government figures revealing a leap of 25% on 2008 as the recession deepened. Over the same time nearly 80,000 individuals were declared bankrupt while company failures totalled around 50,000.

If you are looking for help and IVA advice on how best to deal with debt or considering your next move on where to turn for impartial advice and guidance then there is a wealth of professional, independent IVA companies out there. You may be surprised at the range of options available and surprised too at how good you will feel knowing that you are taking positive steps to address the situation.

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Are you in debt? An IVA (Individual Voluntary Arrangement) might be just what you need to solve your financial problems

Thursday, February 4th, 2010

Financial problems come in many forms, shapes and sizes and often arise through no fault of your own. Maybe you’ve been let down by someone who owes you money. Maybe you have fallen victim to the economic downturn and lost your job or had essential overtime cut. Health reasons, domestic situations, family circumstances can all come in to play and cause all manner of difficulties.

If you have financial problems then take consolation from the fact that you are far from alone. Figures reveal that as many as 1000 people a day are seeking some form of IVA help or formal debt rescheduling plan.

One of the most flexible options for dealing with debt, an IVA (or the Scottish equivalent the Protected Trust Deed) is often a preferable alternative to bankruptcy for those in serious debt. For example, an IVA or Protected Trust Deed is more flexible, helps you avoid the restrictions of bankruptcy and protects your assets unlike bankruptcy.

In setting up an IVA you need to organise a legally binding timetable with your creditors in which to clear your debts, usually over a period of 5 years. At the end of the period, as long as the agreed percentage (usually somewhere around 50% of their original debt) has been made, any outstanding debt may be written off.

In order to qualify, you will need to meet the following requirements:

• You must have at least £15,000 of unsecured debt
• You must be able to pay at least £200 a month into the IVA
• You need to owe money to three or more. creditors.
• You need to have a regular income

Though an IVA can be an effective way of avoiding bankruptcy if you fail to maintain payments or default on the arrangement you may end up being declared bankrupt.

IVAs have been around for a while now so these days IVA help is plentiful and professional. If you think an IVA could help then seek advice. Make sure though that you take the necessary professional and independent advice before committing.

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