An IVA Individual Voluntary Arrangement will help you clear your debts as:
- An IVA will cut the amount you owe (typically by 50% but in some cases by up to 70%)
- An IVA will freeze the interest you pay
- An IVA will legally prevent creditors taking action against you.
An IVA is likely to be your best route to becoming debt free if you don't have the equity in your property or a big enough surplus - to consolidate debt using a re-mortgage. If you have assets you want to retain (like your house) an IVA will probably be better than bankruptcy.
Be careful if you are thinking about a Debt Management Plan (DMP) to deal with your debt matters. A DMP is usually scheduled to last 10 years (twice as long as a typical IVA) and will not necessarily offer any debt forgiveness or stop creditors chasing you.
The UK Insolvency Helpline advise 1000’s of people on UK debt when moving abroad each month. The basic rule on an IVA whilst living abroad is you must have been UK domiciled within the last 3 years.
A lot of people start a new life abroad and accumulate new assets, only to find a few years later that a creditor has traced them and now demands the money. A debt can be collected anytime up to 6 years after it was incurred. Please note if a creditor has taken legal action on an account, the debt can be legally recoverable indefinitely.
Useful resources:
The UK Insolvency Helpline
Address: The UK Insolvency Helpline, National Administration Centre, 788-790 Finchley Road, London NW11 7TJ
Contact By: Freephone: 0800 074 6918
Website: http://www.insolvencyhelpline.co.uk
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