How Can We Write Off Upto 75% of Your Debt?
If you are currently suffering under the weight of significant debt, fifteen thousand pounds or more, you might find that you can write off seventy five percent of your debts with an IVA or Individual Voluntary Arrangement. The big question that most people will want to know is how?
The first thing is that unlike bankruptcy, you don't have to sell off any of your main assets such as a house, car or a luxury item. An IVA is a government-approved agreement between a debtor (someone who owes) and their creditors (a person or business who is owed). The debtor seeks help from an advisor who negotiates the IVA proposal plan on their behalf. The proposal consists of a plan to repay a portion of the debt back to the creditors over a fixed period of time, usually three to five years. The repayment rates are based on how much is owed and your personal circumstances.
But I know you are still asking how do I write off 75% of my debts using one of these IVAs? Well, take Sue, she's forty years old and working full time, but she's gotten herself into some unsecured debt problems and now owes thirty six thousand pounds. She makes a proposal plan to repay £250 per month, which she can afford for a period of five years. This amount of £250 is placed into her IVA fund and split between her creditors. Sue repays fifteen thousand pounds over five years, but the remaining twenty one thousand pounds is completely written off. In cases of higher amounts of debt, the amount written off could be higher, up to 75% of the debt. At least 25% of the creditors must agree to the IVA proposal at a meeting between the creditors' representatives and your advisors.