Press Release 18/12/07
DARK AGES RETURN AS BROKE BRITS RISK DEBTOR’S PRISON LOCK-IN WITH 20 YEAR DEBT MANAGEMENT PLAN, SAYS IVA.COM
- Prison-like sentence awaits those with insupportable borrowings
- Short-term shopping spree isn’t worth the long-term financial fiasco
- IVA an escape route out of a penniless future and lengthy sentence
OVER-INDEBTED loan and credit card borrowers could be in for punishment should they become incapable of paying their bills – the worst case scenario Debt Management Plan could incarcerate them for 10, even 20 years, warns IVA comparison site IVA.com.
As Brits armed with credit continue to hunt for presents on the high street and the web, IVA.com director Terry Balfour warns of the consequences of stretching too far – borrowers could be sentenced to repaying their debts for nearly a quarter of a century!
“Whilst consumers won’t be under lock and key 19th century style, suffering the drawn out process of a Debt Management Plan is not far from it,” says Balfour.
“The effects of this debt solution programme can be felt for a very long time – up to 20 years in the most extreme cases – because consumers are making a small monthly payment on a high level of debt.
“And as the arrangement is not a legally binding agreement between the parties, the creditors don’t have to honour terms agreed and can still pursue the debt,” he adds.
And many debt-laden borrowers could even increase the balance owed if creditors decide not to freeze the interest.
The key to escaping this onerous burden could be an IVA – and as it is a formal contract between the parties governed by the Insolvency Act of 1986, creditors cannot take any further action on the borrower.
“If the consumer has enough disposable monthly income and wants to repay all their debts, they should apply for an IVA – it’s a five year process and at the end of it the debt will be classed as settled,” advises Balfour.
“Our website – the first of its kind – will help those at their wits’ end. IVA.com compares IVA firms and Insolvency Practitioners with the rating system based on real life experiences.”
“Our IVA comparison shows which companies are the ones that really know what they are doing and can successfully negotiate between consumers and creditors,” he adds
There are nearly 1,000 IVA providers listed on IVA.com’s database covering the whole of the UK. The service allows clients to find an IP who is close enough for them to meet face to face and ensures they don’t leap from the frying pan into the fire by putting their financial security in the hands of a firm that cannot deliver.
“IVA.com acts as the IVA applicant’s first point of contact, answering any questions regarding their application or any other IVA issues; and they can check the status of their proposal online at any time,” says Balfour.
– Ends –
General enquiries: 0800 324 7011 / www.iva.com
Terry Balfour, Director
0800 324 7011
Lucie Ager, Consultant
01273 774109 / 07796 878263
David Andrews Media Ltd
David Andrews, Senior Consultant - Director
01273 774109 / 07941 255855
David Andrews Media Ltd
Founded by its managing director Terry Balfour in 2007, IVA.com is the first IVA comparison website in the UK. It is a free interactive online service for consumers looking for an IVA firm most suitable to their needs. Its database has over 1,000 UK-based IVA firms and insolvency practitioners (IPs). IVA.com brings transparency to the market by employing its unique rating system based on the real experiences of IVA customers. There are over 500 reviews and many more ratings that provide people with details of how IVA firms are performing.
IVA.com enables smaller firms to compete more effectively with the larger IVA factories.
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