Abacus Daily Debt News

IVAs good for unmanageable debt?

Britons struggling with debt management may like to contact a debt adviser and consider entering into an individual voluntary arrangement (IVA).

According to This is Money - in a checklist of ways in which to handle new year debt - opting for an IVA is one path that can be taken once it has become clear that any debts amassed "are truly unmanageable".

This, the news source observed, is a "formal debt payment plan" and will see any interest on the amount owed frozen.

However, it was also noted that advisers could recommend a debt management plan - which is more informal than an IVA - or even bankruptcy, "if you have debts so large that you do not have a hope of paying them and you do not have major assets like a home that could be seized".

Those in such situations may also like to consider the words of Nick O’Reilly of Vantis Business Recovery, who stated that IVAs may be the better option for those with regular incomes, as bankruptcy can still come with some stigma attached to it.

By Sarah Adie