Before you can enter into an IVA, you will work with an Insolvency Practitioner (IP) to draw up an IVA proposal, detailing the proposed terms of the IVA. This will then be sent to your lenders for approval. Lenders accounting for at least 75% of your total debt must approve the terms before your IVA can go ahead.

Any homeowner considering an IVA (Individual Voluntary Arrangement) or other debt solution will undoubtedly want to know what effect it would have on their property before they commit themselves to anything.

]]> http://www.debtadvisersdirect.co.uk/debt-consolidation-blog/2459/what-will-happen-to-my-home-in-an-IVA.htm Fri, 19 Jun 2009 16:3:54 GMT In times like this, staying out of debt can be particularly difficult. Over the past two years, costs of living have been rising fast, and the recession means many people`s incomes have dropped. Most of us have been affected by the economic downturn in some way - and many will experience debt problems at some point as a result.

However, if you`re thinking about entering into an IVA, you might be concerned about the effect it may have on your credit rating. Here`s a look at how an IVA works, and how your credit history may be affected.

However, many people wonder whether they should `go it alone` or ask a professional debt management company to help them.

It is an informal arrangement with your lenders. You`d ask a debt management organisation to negotiate with them, asking them to accept reduced monthly payments towards your debts, based on how much you can realistically afford.

However, debt consolidation loans are not right for everyone. Let`s have a look at the advantages and disadvantages of debt consolidation loans, to help you decide whether it`s the right debt solution for you.

Here we take a look at the advantages and disadvantages of two debt solutions: debt management plans and debt consolidation loans.

However, an IVA (Individual Voluntary Arrangement) could help you to avoid bankruptcy. An IVA is a legally binding agreement with your creditors in which you will repay an agreed portion of your debts, based on how much you can afford, after which the remaining debt will be written off.

Debt advice - the benefit of experience. . .

Joining a debt management plan means asking debt specialists to talk to your lenders on your behalf. They`ll explain that your circumstances have changed and that you can no longer afford to make the monthly payments you originally agreed to.

No two people in debt are in exactly the same situation. As a result, there are a range of debt solutions available, each designed to help people in different situations. A professional debt adviser can help you make the right decision on how to tackle your debts.

However, many people in this situation could be better off with an IVA (Individual Voluntary Arrangement). An IVA allows you to avoid bankruptcy by agreeing to repay as much of your unsecured debt as you can over a period of time (normally 5 years), after which the remaining debt will be written off.

First of all, there`s no universal `right` answer - if there was, everyone would do it that way. There are benefits and drawbacks to either approach.

Here`s a quick look at a few of the benefits which each approach may offer...

However, bankruptcy is a big financial decision that will have major implications on your future finances. It will severely limit your access to credit for six years (and perhaps longer, in some cases), and if you are a homeowner it will most likely result in the repossession of your property.

How do I set up an IVA?

If you think an IVA could be the solution to your debt problems, you should start by calling an Insolvency Practice - an organisation which is qualified to carry out IVAs. Once you`ve spoken to them about your finances (details of income, expenditure, debts, property owned, etc.), they`ll be able to tell you whether or not an IVA is a realistic option for you.

As well as consolidating your debts into one convenient monthly payment, a debt consolidation loan can also be repaid over a longer period than your original debts, reducing your monthly outgoings. This can make a big difference to your ability to repay your debts.

Clear debt on your own

There are many things you can do on your own to clear debt and help improve your financial situation.

How debt consolidation works

A debt consolidation is a new loan that pays off your existing debts, effectively consolidating several debts into one convenient monthly payment.

How do I know I need debt advice?

Some people who fall into debt don`t realise when they need help. It`s easy to think that you can manage your debts alone and they will get sorted out eventually, but this runs the risk of your debts growing even bigger, and the problem becoming even worse.