Before you agree to an IVA, it is essential that you consider all of the IVA alternatives. Even if you do not qualify for an IVA, there are alternatives which are designed to help you with your debt problems.
To discover which of the following IVA alternatives is best for you, please contact a member of our team.
Bankruptcy: IVAs were first introduced as a bankruptcy alternative, but you may still be wondering if bankruptcy is right for you instead of an IVA. It is important to know that bankruptcy is a very public procedure with a stigma attached to it; the bankruptcy order will be in the public domain and is advertised in your local paper.
Bankruptcy typically only lasts for 12 months and a majority of your debt could be written off as part of the process. But you also lose control of your finances and you may have to sell your home or your car in order to repay some of the debt to your creditors.
Protected Trust Deed: A Protected Trust Deed is the Scottish IVA alternative. Like an IVA, you will be debt free after a set period of time, typically 36 months.
Debt Consolidation Loan: A Debt Consolidation Loan is often a loan secured against your home which allows you to consolidate your unsecured debts into a lower monthly payment. You may find that you can benefit from a lower payment, but you should be aware that as the debt is now secured against your home you are at risk of losing it if you fall behind on payments.
Debt Management Plan: Like a Debt Consolidation Loan, a Debt Management Plan is an IVA alternative which lets you consolidate your debt into one lower monthly payment. It has one major difference, the debt is not secured. Instead of getting a loan to pay off your debts, your current debts are made more affordable to you by negotiating with your unsecured creditors to offer you a lower monthly payment.
For further details about our IVA alternatives, please call today.