Young People Using IVAs to Shed Debt

[Myvesta-Steve]

Curious, anyone agree with the statement that "young people use IVAs to attend to their debt problems before entering into big commitments such as a mortgage" from this brief article on Money Expert?

MoneyExpert.com - IVAs offer alternative to bankruptcy - 02/10/2007
People struggling with their debts can benefit from entering into an individual voluntary arrangements (IVA) as it often offers a solution to debt problems, according to an insolvency advisor.

The Association of Business Recovery Professionals (R3) says that IVAs are useful because they avoid bankruptcy or putting debt problems "on the back burner".

A spokesman for the group explained that IVAs allow people to agree to pay a certain amount over a finite period.

"You know that providing you abide by the terms of the arrangement, at the end of it will be successfully concluded and you will be able to write off a proportion of the money that you owe," he said.

He added that it was becoming an increasingly popular option with young people, who use IVAs to attend to their debt problems before entering into big commitments such as a mortgage.

IVAs were introduced under the 1986 Insolvency Act as an alternative to bankruptcy.

Steve



----------------------
Steve Rhode
President of Myvesta Foundation
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Myvesta UK IVA Help: http://myvesta.org.uk/programmes/myvesta_iva.html
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[Adam Davies]

Hi
It makes it sound like young people are "using" the
IVA process as a way to clearing their debts before settling down etc.
I am sure that it happens but not on the scale that is suggested.I,ve not come accross any such cases on this forum.
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[jpj]

Hmm..think thats rubbish!

There is every age under the sun on this forum, and I read somewhere that more and more pensioners are getting IVAs !

I think were going to see a big rise in IVAs and bankruptcies now the property market is slowing and people cant keep upping their secured bowrrowing.
Just heard today that Barrats housebuilder down the road from me cant shift the flats, so are leaving them as shells and just locking the doors...!![:0]

Hold on folks..the wheels are coming off the property wagon![B)]

[MelanieGiles]

That article is very badly written. It almost seems to suggest that R3 are encouraging reckless borrowing and then using IVAs to dump the debt - which they would never do. Personally I will be really glad when all of this media hype towards consumer debt dies down, thus allowing members of my profession to carry on the good work of repatriation of monies to creditors - for clients who maintain a sense of responisbility towards their debts.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[lily]

One sided statement, if ever there was one. Debt is a terrible stress for the majority of us. IVA's are tough and I doubt many people think about how much is written off, if young people wanted to clear debt before an asset like a mortgage, BR would be the most likey option.

lily