Manchester is known as one of the debt hotspots across the UK and one debt solution you may be applicable for is an IVA. The Individual Voluntary Arrangement is a popular debt solution for people who want to resolve their debt problem within 5 years and can afford to repay an amount of money to their debt each month . To qualify for an IVA in Manchester you should meet the criteria:
- Must have unsecured debt to credit cards, loans or overdrafts etc of at least £7,000
- Must be able to contribute towards your debt each month (you will stop paying your monthly contractual payments to debts)
Manchester Debt Help with an IVA
Being one of the UK’s largest cities it’s no surprise that Manchester is one of the most popular areas for debt problems. The number of people in debt as a percentage may be low, but because of the number of people living in Manchester it can seem like it’s a debt hotspot. It’s well known that many of the debt management firms operate in and around Manchester because of the number of people in debt there.
Debt Support Trust help people across the UK and can help people in Manchester in debt, with a variety of debt solutions. If you’re in Manchester and need debt help then an IVA could help you. This is just one of many debt solutions you could be applicable for. To understand which solution to debt you’re best suited for you should seek professional debt advice.
A Manchester IVA is similar to other IVAs across the UK. It allows you to repay a percentage of your debt for a fixed period of time, usually 5 years. At the end of the solution any debt which is outstanding, along with interest and charges, is legally cleared and you don’t have to repay this in the future.
The IVA has certain benefits and negatives, so if you’re considering this debt solution and live in Manchester then check if the IVA is right for you.
Pros & Cons of IVA in Manchester
Anybody living in England, Wales or Northern Ireland could be suitable for an IVA if they meet the criteria. There are also pros and cons to consider which we will detail below.
The benefits of entering an IVA are
- You pay one monthly amount to your debt to one company.
- You don’t have to talk to your creditors.
- Your creditors cannot pursue you for the money while you’re in the IVA – you have protection from them.
- Your interest and charges are frozen.
- You can usually keep assets like a house, although these will have to be valued.
- At the end of the solution, outstanding interest, charges and debt are all written off and you can start again financially.
There all sound like excellent reasons to enter an IVA, however, there are negatives of the solution too. These negatives include
- Your credit file will be impacted. Because you are not maintaining your monthly contractual payments to your debt as you will stop all of these when you enter the IVA, your credit history will have a default. This can mean obtaining credit is harder in the future. Each default lasts for 6 years.
- If you fail to complete your IVA your debt will return to you to deal with and you may be made bankrupt
- If you have a house with more equity than unsecured debt you may not be suited to the IVA
- If you inherit money or win the lottery etc you would be asked to pay off your debt solution in full. This would include any fees and charges for managing the debt solution.
- Your creditors must accept your proposal so it’s important to put forward the best offer possible. Usually this isn’t a problem, however creditors can still reject your offer.
Manchester Debt Advice
If you live in Manchester and need debt advice don’t wait too long to seek help. You can go to your local Citizens Advice Bureau for face to face debt help. Alternatively, you can contact Debt Support Trust on 0800 085 0226. Our friendly debt advice team is on hand to support you through the difficult task of deciding which debt solution is right for you.
You can also complete our confidential debt analyser which will give you information about the appropriate debt solutions for you.