Dealing With Debt In 2011posted on 4 January 2011 | posted in General Category | ( 0 ) CommentsAs we start the New Year many people will be waking up to a debt hangover day after day. There were more than 140,000 individual insolvencies in England and Wales in the last year, and debt advisors at Integrity Debt Solutions are predicting a rush of activity in January and February which they are already starting to see. To help those in deep financial trouble to understand what options are available to them, the Insolvency Service has launched a week-long campaign called Dealing With Your Debt. They have teamed up with various organisations and between them they will be striving to demystify personal insolvency and explain the difference between processes such as bankruptcy andIndividual Voluntary Arrangements. The news comes as advisors at Integrity were commenting on the different types of problems that can lead to personal debt problems. " Causes of debt and insolvency are often driven by a life-changing event such as divorce, losing a job, bereavement or because people slowly drift into debt. "The ready availability of easy credit in the last decade created spending habits that led many people into personal insolvency. People then do not know what to do, and brush the problem under the carpet, thinking that it will just go away. "We offer professional and totally impartial advice that is suited to the individual. We physically sit down with them and go through all the available debt solutions in England and Wales. We look at their income and expenditure and their level of debts, which enables us to get a clear picture of their financial situation. Ignoring the problem is not going to make it go away. Bankruptcy remains the most commonly used form of personal insolvency. A person is usually bankrupt for 12 months, after which time they are released from debts, with a few exceptions such as student loans. Individual voluntary arrangements (IVA) last five years and involve the freezing of the interest on debts in exchange for a set sum being repaid each month. On completion of the IVA the balance still owed to creditors is written off. Debtors pay a fee to the insolvency practitioner who administers the agreement, but these fees are generally very high and usually paid over a period of 2 years, during which time hardly any monies get paid to the creditors. The individual then has to pay monthly repayments back to the IVA company. This can leave people on the poverty line and we have seen a big increase in IVA's failing due to this". 2011 is going to be a tough year for everyone, and with VAT and interest rates increasing personal insolvency figures will go through the roof. We provide best advice, in debt and financial matters, whilst treating customers fairly. We can reduce your monthly outgoings and make you debt free! Everyone’s circumstances are different and a “one size fits all” approach is not always appropriate which is why we offer a FREE review of your current situation. Our team consists of qualified:- Debt , Financial and Mortgage advisors, Insolvency Practitioners and specialist Insolvency Solicitors. We offer a full explanation of the available solutions including the advantages and disadvantages. Contact us now on 01743 272900 Share this blog entry:
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