Debt consolidation options in Brighton and Hove

The most popular debt consolidation solutions in Brighton and Hove area are IVA and Bankruptcy. People are still debating which one is a better option, but if we weigh the pros and cons of both the options and check the various statistics available you can see that there has been an amazing increase in the number of people choosing an IVA. The reason for this is due to the benefits than an IVA has over a bankruptcy.

An IVA or Individual Voluntary Agreement is a formal alternative to bankruptcy. IVA was established in 1986 as an Insolvency Act that formulates a proposal for repayment of the debt to their creditors through a licensed Insolvency Practitioner.
Usually only the claims of unsecured loans are processed through an IVA and the state of secured creditors remains almost unchanged when an individual gets into the IVA.

One of the benefits of IVA in Brighton & Hove is that it is flexible according to the different circumstance of the debtor. The payment terms are based on monthly income of the person (the disposable income), any capital, any third party contributions, assets owned by the individual, etc.

The process usually begins with the Insolvency Practitioner analyzing the financial status of the debtor by collecting all the necessary documents including statements from the creditors and income statements from the individual. After careful consideration the Practitioner or Supervisor will propose a plan of repayment.

This will be brought up for acceptation to all the creditors at a meeting where all the involved parties will be attending. Often the creditors seem to prefer an IVA because of its higher money returned they receive from it than bankruptcy.

For this repayment arrangement to work, around 75% of those creditors who attended the meeting or their proxy should accept the proposal. Those who did not attend or vote will have no say later if the large majority of 75% accepted the IVA proposal.

One clear factor that favors IVA is the high level of privacy that is available. If Bankruptcy is declared, a notification has to be published in Brighton & Hove gazette and national newspaper but IVA will not be publicized.
In an income based IVA there is a maximum period of 5 years available for you to pay off the debt while bankruptcy is usually completed usually little over a year.

In bankruptcy there are restrictions on certain employment such as a person declared bankrupt is not allowed to act as a director in a company. You are supposed to inform your employer of your situation if you are filing for bankruptcy.
Also there are trading restrictions for anyone who is about to declare bankruptcy. There are no such restrictions involved in an IVA.

The impact on the credit rating is almost the same in both the cases and will usually last for 6 years. IVA could seem as a positive impact as it shows commitment of paying the debt but it does not seem to have any impact the credit rating.

The major benefit of IVA over any other debt management scheme is that all the unsecured creditors are bound by it even if they do not agree. Even those who decided to stay away from the voting do not have any choice but to agree with the proposal.

All the creditors bound by the agreement cannot enforce any legal action against the debtor to recover their debt.

The biggest advantage of an IVA over bankruptcy is perhaps the protection it offers over the debtor’s home in Brighton and Hove. In bankruptcy almost all the assets (except perhaps the tools of the trade, household utensils and a modest vehicle) will have to vest with the trustee.

In an IVA your property can be completely excluded or equity over it can be released by re-mortgaging it. There will be a restriction of the property from being sold or re-mortgaged without taking the consent from your Insolvency Practitioner or Supervisor.

There will be an Insolvency Practitioner (a legal expert) helping you through the whole IVA term playing different roles from an advisor to supervisor.

Brighton & Hove City Council website gives a list of debt advice organization that can help you decide which is your best option based on your circumstances.

Here below we list some reliable firms for IVA and other related debt solutions.

List of IVA companies in Brighton & Hove

This list provides addresses and contact information for some of the certificated IVA firms active in Brighton and Hove. This Data comes from the Directory of Insolvency Practitioners made available throughout the Business Link website.
Please note, we do not accept sponsorship for this kind of listing, our aim is to provide our readers the most valuable and genuine information.

In case you prefer contact a non for profit debt charities instead of a for profit firms, we have added some of the most famous debt charities available for free advice in Brighton.

Company: Begbies Traynor (Central) LLP
Address: 2-3 Pavilion Buildings, BRIGHTON, BN1 1EE
Telephone: 01273 747847
Fax: 01273 747743
Licensing Body:  ICAEW
Company: GCP
Address: 2 Preston Park Avenue, 2 Preston Park Avenue, BRIGHTON, BN1 6HJ
Telephone: 01273 556925
Fax: 01273 549117
Licensing Body:  ACCA
Address: 3 Queens Road, BRIGHTON, BN1 3WA
Telephone: 020 7778 9230
Fax: 020 7778 9239
Licensing Body:  ICAEW
Company: Jackal Advisory Limited
Address: 3rd Floor, Queensbury House, 106 Queens Road, BRIGHTON, BN1 3XF
Telephone: 01273 862 424
Fax: 0845 299 1021
Licensing Body:  ICAEW
Company: Jeremy Knight & Co LLP
Address: 68 Ship Street, BRIGHTON, BN1 1AE
Telephone: 01273 203 654
Fax: 01273 206 056
Licensing Body:  ICAEW
Company: Julian Dobson Solicitors
Address: 1 Frederick Terrace, Frederick Place, BRIGHTON, BN1 1AX
Telephone: 01273 766 355
Fax: 01273 766 350
Licensing Body:  SRA
Company: RSM Tenon Recovery
Address: Lyndean House, 43-46 Queens Road, BRIGHTON, BN1 3XB
Telephone: 01273 725 566
Fax: 01273 724 502
Licensing Body:  ACCA
Address: 44-46 Old Steine, BRIGHTON, BN1 1NH
Telephone: 01273 731 144
Fax: 01273 731 164
Licensing Body:  IPA

Debt Charities in Brighton

Brighton Housing Trust Advice
Offers impartial advice and support on managing your finances, including budgeting and general debt problems.
Tel: (01273) 234737 

Debt Advice Foundation
Debt Advice Foundatio is a registered debt charity offering support to anyone in debt difficulties in Brighton.
Tel: (0800) 043 40 50 

Consumer Credit Counselling Service (CCCS)
CCCS has been providing support and advice to people in the UK for over 15 years. They are also active in Brighton.
Tel: (0800) 138 1111

Brighton & Hove Citizens Advice Bureau (CAB)
They offer confidential advice on managing your finances and general help on debt problems and related.
Tel: (08451) 203710

Both IVA and bankruptcy have costs and implications involved.

We advise you that when looking at any debt solution you read the terms and conditions very carefully and if you are not sure about its meaning or effect that you seek qualified independent financial advice. 

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