IVA and debt management services in Preston

With spiraling financial problems caused due to various reasons, the residents of Preston, one of the cities of Lancashire in England, are fighting to get back to the mainstream of life. Their search for a way to come out of the debt mess without the odds of being stamped as a bankrupt can in a way be solved. All that they need to do is contact a good Debt Solution Agency in their area or any of those numerous helpline services that operate over telephone and through online too.

But for that they need to know some basic things and available debt solutions so that they can have a somewhat clear picture when they approach a debt service professional. For those who have unsecured debts, which they are unable to pay, they can go for an IVA.

IVA (Individual Voluntary Arrangement) in Preston is one of the most sought after solution in the UK because of its various benefits and less adverse effects. In an IVA a debtor can go for an agreement with the creditors for repaying the maximum possible amount of the outstanding debts of a fixed period of time, on a small monthly payment basis. When the creditors agree and the said amount is paid, the remaining debt is written off and the debtor is free of all the debts.

An IVA in Preston is normally sought because it
Helps the debtor to pay only the amount that he can afford to. This should be a minimum of 25% of all the unsecured loans that he owes.
Does not require the debtor to make the entire payment in one go. He can make a small, fixed monthly repayments. (The maximum repayment period is 60 months)
IVA helps him in retaining his home property.
Helps him to continue living a decent life while repaying the debt.
Does not disclose about the insolvency of the debtor to anyone else.
Is less effective as far as the credit rating goes.
Has no barring on the professional career of a person. If he is doing business, he can continue with that too.
Is legally binding on the debtor and the creditors. So either of them cannot take a U-turn midway.
Are all debtors eligible to go for IVA in Preston?
No. Not all debtors. But those who fulfill the following criteria can opt for an IVA.
Should have a minimum of £15,000 as outstanding dues.
It should be unsecured debt.
The number of creditors should be a minimum of three different persons or organizations.
Should have a regular income.
Should have some disposable income of a minimum of £200.

How IVA can be implemented?
Since an Individual Voluntary Arrangement is a government scheme, a Licensed Insolvency Practitioner’s involvement is a must. He plays an important role throughout, till the IVA is successfully completed. So first of all contact a IP, either directly or through the Debt Solution Agencies or through the various helplines that are operating.
Discuss with them your financial situation and they will ask for your financial details and if your case is found to be suitable for an IVA they will prepare the details in a prescribed format. In this it would be mentioned about how much you agree to pay, how much your monthly contribution towards the repayment would be, for what period you will be paying etc. After going through it if you find it OK you sign it and approve it. The IP then informs the creditors about it and then submits the proposal to the court, which will then approve it. Once approved, it becomes a legal document and a copy of the same is sent to all the creditors. But remember it is not yet legally binding on them unless 75% of them agree to it. The creditors then come together and discuss and vote for or against it. If 75% of them is in its favor, the IVA becomes effective and those who had voted, or abstained from voting too are bound to accept it. The same is informed to the court by way of a report and the debtor begins making the payment.

He cannot contact the creditors directly. He has to send the money to the IP who will disburse the funds to the creditors.
After the completion of the said period and successful payment of the entire installments, the IP sends a report to this effect. The court issues a Completion Certificate and then on, the remaining debts are wiped off from his records and now he begins to lead a debt free life.

Apart from this, there are other debt management but are less effective especially because they are informal arrangements and are not legally binding. And the other major alternative is the Bankruptcy, which is a real blow to a person’s all round status, and he also looses all his assets in the process.
But, it is always better to seek a professional advise before deciding one of your own. For further details you can contact the local Debt Advisories operating in Preston:

Horsefield­s Financial Consultants, Premier Ho Church St, Preston, Lancashire, PR1 3BQ Tel: 01772 563952

Legal & Trade Collections Ltd, Legal & Trade House, 33-34 Winckley Square, Preston
Lancashire, PR1 3JJ, Tel: 01772 832188
Vaughan Higson, 22 Ribblesdale Place, Preston, Lancashire, PR1 3NA, Tel: 01772 555174

Yes Credit Claims, 25 Longridge Road Ribbleton, Preston, Lancashire, PR2 6RE, Tel: 0800 6127655
Corporate Fraud Solutions, 7 Barnsfold, Fulwood, Preston, Lancashire, PR2 3EU, Te: 01772 719998,

G.A Pearson, 44 Todd La North, Lostock Hall, Preston, Lancashire, PR5 5US, Tel: 01772 335386
Debtcalm Ltd., 3 Aldwych Drive, Preston, Lancashire, PR5 5LF, Tel: 0808 1782648
Debts 4 Us Ltd, 18-20, Berry Lane, Preston, Lancashire, PR3 3JA, Tel:01772 783592

For online help you can check out The UK Insolvency Helpline at http://www.insolvencyhelpline.co.uk/debt_advice_uk/preston.php

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