Statistical Details about IVA in Birmingham

Most of the time people in Birmingham get into trouble by using credit cards without thinking about how they will be able to pay it back. It is a very convenient option but you should use it with discretion. Some people use it without any control on it and only when the bill arrives, they start thinking about how to make the payment. Finally you reach a point where you either need to file for bankruptcy or go for the IVA option. Birmingham being one of the largest cities in UK, can boast of a lot of companies out there that are experts in debt management solutions and IVA solutions.

An IVA (Individual Voluntary Arrangement) will be seen as a better option if you check the statistical details about it in Birmingham. You will be able to find that it has its advantages over Bankruptcy, especially for protecting your home. It is true that it takes time to finally come out of the debt but still it will be a final settlement and you will be completely debt free at the end of that period. Various published statistics show the success rate of IVA in helping people to come out of debt.

The reason for the high success rate of IVA is because it is a better alternative for those to avoid bankruptcy. It is a formal repayment proposal approved by the government and is also flexible. The repayment plan is made taking into account of the daily expenses of the individual such as basic living expenses, mortgage payments etc. When you go in for bankruptcy it is more likely that you lose your home but in IVA you have more chance of saving your home even otherwise as your IVA repayments gives you provision to pay the mortgage, which otherwise you might have made lapses. Another factor for its high success rate is that statistics show the return what the creditors in IVA is much more than what they get in bankruptcy and so creditors also prefer IVA more than bankruptcy to regain their money. So they are more likely to agree to your repayment proposal and are also willing to write off the remaining debt after the IVA term gets over. It is essential that at least 75% of the creditors agree to your IVA proposal for it to take effect.

In all over UK and specailly in the city of Birmingham, consumers with overwhelming amount of debts are turning to expert debt management firms that offer IVA and avoid bankruptcy. There is also the privacy aspect that makes people prefer IVA. Bankruptcy is always publicised in local newspaper and gazette while in IVA there is no need to so and will only be there in personal insolvency register that can be referred by the credit rating agencies. For someone struggling with debt problems, even the fee to get you out of debt problems matter a lot and IVA is less expensive than bankruptcy.

There is ‘The Insolvency Service’ register of the UK government at the website http://www.insolvency.gov.uk/otherinformation/statistics/insolv.htm that shows the statistics of IVA with latest data. It does not give city wise details, so you cannot see specific details about Birmingham, but you can get an overall idea about the IVA statistics in UK. It has details about the IVA that has already completed successfully under ‘completion’ that also means that they have been issued the completion certificate. Then there is the ‘failed’ or ‘termination’ category which means the supervisor issued a ‘certificate of termination’ due to the inability of the debtor to keep up with the payments. ‘On-going’ or ‘Current’ category shows the IVA that has been continuing currently.

There is also another category which says ‘revoked’ or ‘suspended’ that says there is a challenge in the court filed for the approval of the IVA. If you check the statistics, in the year 2009 there were around forty five thousand on-going cases while 465 cases had been completed successfully.

There also had been around two thousand cases that that been terminated due to failure, not just in Birmingham but whole of UK. If you check the year 2000, there were 71% of the cases that had been completed successfully out of around 8000 cases. Now if you check the total number of cases for the last 10 years, you would see an astonishing increase from around 8000 cases in the year 2000 to around 47000 in 2009.

This clearly shows that people are turning more towards IVA over the years because of its clear benefits over other debt consolidation schemes.

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