The Government has made it clear that it soon hopes to allow easier access to Individual Voluntary Arrangements (IVA), today's number one and fastest growing alternative to insolvency.
This plan for an easier to obtain IVA should be in effect within the year according to the latest reports.
The changes hope to make a law that requires only 51% of the lenders who are owed debt to give approval for an IVA. Currently, 75% of the lenders for one's debts must approve for an IVA. This 51% rate would only apply on debts below £75,000. This new plan would also make it quicker to file an application for an IVA and involve less paperwork.
In an IVA, the lenders erase part of the money owed and the creditors must make a fixed agreeable monthly payment every month for a given time.
Charles Howson, chief executive of Accuma, a personal insolvency specialist, said: 'The existing laws are outdated and don't apply to the vast majority of people applying for an IVA today. These rule changes would simplify the process and make taking out an IVA more viable for people in debt.'
There were over 47,000 bankruptcies this year and the easier process for filing an IVA is an attempt to help reduce this number.
Around 20,000 people filed for IVAs this year and it is expected that a total of 30,000 will file for an IVA this year.
One of the main benefits is that creditors cannot get your home while you are on an IVA.
Related Articles
Debt Consolidation - Benefits and Options
By: Luke Ashworth | 05/04/2007 | Debt Consolidation
Debt consolidation, for many people, can bring a huge bring a massive sense of relief. By consolidating debt, you can eliminate or reduce collectors' calls and letters, as well as just being able to feel more secure.
Starting a New Career Led to Debt Crisis!
By: Luke Ashworth | 11/04/2007 | Debt Consolidation
I have been working in a factory most of my life and I know that I am getting on in years. So I decided to go back to college and learn a new trade that would allow me to make a living outside a factory.
Could a Debt Management Plan Help you
By: Luke Ashworth | 08/05/2007 | Debt Consolidation
If you are in debt, you may feel like you are trapped in a cycle that never seems to end. There are so many ways to get into debt, yet there are so few ways to get out of it.
Budget Planning is Essential to Avoid the Debt Trap!
By: Luke Ashworth | 03/04/2007 | Debt Consolidation
Making and maintaining budgets is vital to prevent getting sucked into debt and needing debt management .
Just How Does a Debt Management Plan Work?
By: Luke Ashworth | 15/05/2007 | Debt Consolidation
A debt management plan is a fairly in-depth plan that looks into every aspect of your finances. By looking at a number of things, it can help you to see what you are spending, what you are earning and what you are basically wasting your money on.
Will New Iva and Debt Standards Work?
By: SimonDuffy | 06/12/2007 | Debt Consolidation
At last, IVA (Individual Voluntary Arrangements) and Debt companies have agreed new industry standards
Could an Iva Help you Out of your Debt Crisis
By: Luke Ashworth | 11/05/2007 | Debt Consolidation
When you find yourself struggling with debt, the world can seem like a really dark place. With so many different things to pay off and not enough money coming in to do it, you may be left wondering how to sort your finances out. If so, an IVA could help.
How Debt Management Saved My Marriage!
By: Luke Ashworth | 30/03/2007 | Debt Consolidation
After a year of arguments and sacrifices, we were finely able to sit down with a debt management specialist and finally hammer out some seriously needed plans. With the consultant's help, we were able to come up with a monthly budget that we could easily stick to, without having to sacrifice the things that we felt we needed.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
I have a business with my mom, she is in financial troulbe and I am afftraid. what can I do?
By: the used one | 13-07-2008
My mother and I have a business together, she is in financial debt and trying to find ways to get out of debt by putting me in harms way. What can I do to protect myself against my mothers misguided attempts to clear the debt?
Suppose you have debt can the person you owe money ...
By: Cathey | 10-07-2008
Suppose you have debt can the person you owe money too attack a joint checking account if that is all the money that goes in the account is from socail security?
I have been sued for a credit card debt but can ...
By: elizabeth | 25-06-2008
I have been sued for a credit card debt but can not appear in court does anyone know thw penalties for not going?
Loans Available: No Social Security Number Required, No Collateral, No Credit check Required, 100% Guaranteed!
By: hill | 14-06-2008
Greetings,I'm Mr. Bill Richards. I'm a certified, reputable, legitimate & an accredited private lender.I loan money out to individuals in need of financial assistance.Do you have a bad credit or you are in need of money to pay bills?I want to use this medium to inform you that i render reliable beneficiary assistance as I'll be glad to offer you a loan.Services Rendered include:*Car Loan*Refinance*Home Loan*Business Loan*Personal Loan*Debt Consolidation*International LoanNo social security and no credit check required, 100% Guaranteed.I Look forward allowing us to be of service to you.Kind Regards,Bill Richards[brichards.lender49@hotmail.com]
Getting rid of baby fat?
By: Leanna | 02-06-2008
how do you get rid of hanging stomach after having a baby?
I need help (Job, ideas, Loans, money anything will help)
By: AEQ | 27-05-2008
I need help; I have live in the USA for more then 25 years, i have a good job but my wife and my two kids live in Mexico. i want to go to them and work in Mexico Toluca but i dont know how to do this i am in debt $30,000.00. i just want to pay off my debts and go back to mexico please help me.
Q&A Powered by:
Latest Debt Consolidation Articles
Get a Government Grant - Get Free Government Grants Online and Get Debt Relief
By: Bryan Burbank | 25/07/2008
A Government Grant can help you get out of debt and put you on the road to financial freedom. Now more than ever we are finding it hard to make our credit card payments and with gas approaching $5.00 a gallon we are using and racking up more credit card debt than ever. It is best if you can eliminate the debt you have so that you do not have to have the extra stress of worrying about making your monthly payments.
Find yourself Debt Relief With a Government Grant
By: Bryan Burbank | 25/07/2008
Getting a Government Grant can be a great way to eliminate debt and get you on the road to financial freedom. Many people are looking for a way to get out from under the problem with having too much debt and not being able to pay the minimum monthly payments. The Government offers many types of grant programs to help people in different financial situations and it is important to have the right information so that you know where to apply and how to obtain a Government Grant to help you get debt
Credit Counseling in Pennsylvania
By: Ronnica Rothe | 25/07/2008
Much like the rest of the country, Pennsylvania residents are struggling with their credit card debt. As if mounting debt were not enough, gas and food prices have gone up exceeding inflation. This means that more Pennsylvanians are relying on credit cards to make ends me than ever.
Wipe Out Debt From Credit Cards
By: Geoff Hibbert | 25/07/2008
A guide to the most economically effective way to pay of card debts.
Helpful Tips for Eliminating Debt
By: Christina Costa | 24/07/2008
Getting out of debt can seem tricky, but with a few helpful tips you can be on your way. Everyone likes to spend but when it comes time to pay back, they are not that enthusiastic. Get started now at eliminating your debt, before it gets any worse!
Learn The Easy Way To Wipe Out Debt Effectively
By: Geoff Hibbert | 24/07/2008
How to use a consolidation loan to reduce your monthly debt payments.
The Advantages Of Full And Final Debt Settlement
By: Geoff Hibbert | 24/07/2008
Learn how a one off managed payment to your creditors can reduce your debts by up to 40%.
Live A Debt Free Life
By: Geoff Hibbert | 24/07/2008
Advice for reducing debts to a minimum and budgeting to keep that way
More from Luk Ashworth
Underwriting on Life Insurance
By: Luk Ashworth | 02/01/2008 | Insurance
When you obtain life insurance there are many things to consider before signing the actual contract. You need to analyze the cost over the long term, whether you can afford it, and if you have chosen the right amount of coverage.
Risks With Term Life Insurance
By: Luk Ashworth | 02/01/2008 | Insurance
When you are thinking about obtaining life insurance you may have asked yourself if there are any risks.
Enhancing your Business Using a Secured Loan
By: Luk Ashworth | 14/12/2007 | Loans
Business is of primary importance to real entrepreneurs. With their hunger for growth, expansion and diversification, funds and working capital always seem to be less than what is required.
Secured Loans and Bad Credit
By: Luk Ashworth | 14/12/2007 | Loans
Not everyone is financially smart and life is full of temptations. While many of us cross the divide with care, a few of us tread the path with a little carelessness by spending more than we can afford.
Protected Life Insurance
By: Luk Ashworth | 11/12/2007 | Insurance
Are you looking for life insurance in case of an accident or unforeseen terminal illness?
Life Insurance Plans
By: Luk Ashworth | 11/12/2007 | Insurance
When you are looking for life insurance you have many options regarding your choices.
Cheap Life Insurance Policies
By: Luk Ashworth | 06/12/2007 | Insurance
An article showing the potenial pitfalls of cheap life insurance policies.
Why Do you Need a Life Insurance Policy?
By: Luk Ashworth | 06/12/2007 | Insurance
An article shwoing you why you need a life insurance policy.
Finance 
