Can I write-off 85% of debt?

February 28th, 2019 by

There is a lot of noise all over the internet at the moment about the prospect of writing off debt and huge proportions many cases 85%!

But how true is this claim? In this article we will explain fully how this may be possible for people suffering under debt and other money problems.

So is it possible to write off 85% of debt or more?

The short answer to this question is yes it is possible in certain circumstances so write-off enormous amounts of debt

This is made possible through government legislation that was passed in the year 1986 known as the 1986 insolvency act

The insolvency act of 1986 contains legislation that enables people in severe debt and in some cases facing bankruptcy to enter into a new arrangement with their creditors in order to pay back their debts on a much more manageable scale and not only that right off the Enormous majority of the money owed.

It was written into legislation that anyone in a certain level of hardship the certain level of debt can seek out and in an insolvency agreement it would be advantageous to both parties both the creditor and the debtor in order to repay as much of the debt as possible and avoid bankruptcy

So how much debt do I have to be in to qualify?

To qualify for this insolvency agreement otherwise known as an IVA individual voluntary arrangement in general you must have a depth of at least £5,000 add more than one creditor to qualify if you are unsure about your personal circumstances and would like a free debt assessment it is recommended you get in touch with those at the Debt solve homepage.

Why do I have to be in this amount of debt?

This is partly because in order for the insolvency arrangement to be worth setting up for the interests of the creditor the insolvency practitioner and also the person in debt there needs to be a substantial amount of debt initially this justifies such a plan that would avoid bankruptcy as this is the one of the main intentions of the scheme

Why would my creditors allow me to write off 85% of my debt?

The principle behind such an insolvency agreement as an IVA is that it is better to be able to recover some debt then to be able to recover no debt as what would be the case with bankruptcy

It is proven that if people do not receive assistance with debt of some description there is an increased chance of them collapsing into bankruptcy people going bankrupt benefits no one so it is a better option to offer an insolvency agreement such as the IVA in order to help recover some money from debts even if it means the person in debt writing off up to 85% of their debt in total

Is the IVA the only way to get out of debt?

There are multiple options when it comes to get relief however one of the reasons the IVA is so popular is the benefits that come with it such as the freezing of Interest no more hassle from creditors writing off large amounts of debt and others but it is still possible to go bankrupt, it is still possible to negotiate yourselves with creditors, it is also still possible to use other funds such as pensions or even negotiate with family members or friends in order to raise funds to repay debt.

Is it possible to write off debt without affecting my credit score?

The only way to write off debt without negatively affecting your credit score would be to actually pay the Debt back

However with an IVA yes your credit rating will be affected due to the reduced payments but it likely won’t be any worse than burying your head and ignoring the debt and also your credit file will take into account the fact you are making efforts to repay the debt, so if anything in the long run with an IVA your credit rating will improve with time.

When it comes to clearing debts there is also the option of going bankrupt however bankruptcy has its own disadvantages as opposed to an IVA this is part of the reason why and IVA is a debt solution in the first place

Why should I be considering good IVA to clear away my debt?

And IVA is perhaps one of the most efficient solutions for you to not only manage your debts in the short-term through payment consolidation and also through the induction of an interim or do that will protect you against creditor hassle, it is also a way in which you can write off the Enormous majority of your debt once your IVA is completed.

The main downside to an IVA is that you need to show commitment over time to making repayments and the certain amount of financial discipline which some people find difficult will be required, however with some dedication and some patience you can and will eliminate your debts with an individual voluntary arrangement

How is an IVA different to a debt management plan?

It is a much more informal financial solution, yes it can help with debts and yes many people have benefited from the use of a DMP, however and IVA has extra authority than a debt management plan it has the authority to freeze interest, stop your creditors from hassling you, formally enforce debt consolidation in terms of monthly repayments, stop bailiff action and any CCJs or Court action against you comma and a range of other benefits that you would not get with either a debt management plan or bankruptcy.

What is this government debt help scheme I keep hearing about?

This is more than likely a reference to the government IVA more information about that at this page

The bottom line is that help is out there if you are suffering with that feel free to contact us for a free debt assessment at the form at the homepage.

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