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Who Goes For IVA Help?

Todays Date: December 19, 2018

It is a wide belief that an Individual Voluntary Arrangement is generally used only by those who earn very little money and have got themselves into somewhat of a mess due to their poor spending habits and bad debt management practices. They are living on credit and spending way outside their means. It is true that a lot of IVA applications result from this and the credit facilities being way too widely available and poorly regulated, it is not true in every case.

In the past couple of years the recession hit people hard, with unemployment going to record highs and many people who actually managed to keep their jobs ended up having to take cuts in their pay. This led to 47,641 people entering into an IVA in 2009. This is a lot but in the horrendous economic situation it can’t really be seen as a surprise. The surprising element of this is the types of people who have begun to take out debt management plans such as IVAs.

There are no official figures regarding salary levels, but those in the know are saying that during the recession there was a big change in the income levels of those applying for an individual voluntary arrangement. It turns out that those earning mid-high wages were also applying alongside those who had low incomes. The whole policy was introduced to make sure that ANYBODY who had debt issues could get help rather than just those on low money.

The following is an example of some of the main criteria that makes one eligible: – Regular income in required. The debtor has to have a job that brings in money. – Three different creditors have to be owed money, i.e. 3 different companies offering credit cards or loans. – The total of the debts has to be above 15,000

The benefits of an IVA generally depend on how much debt the debtor has compared to the amount of money they are bringing in, i.e. if they are earning a certain wage but the debts are much bigger than that, they really need some sort of debt assistance! It has been shown by the recession that it is not just those who earn less money who can be affected by financial problems.

Want to find out more about an iva plan

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