The IVA is the best solution to insolvency for many people and preferable to bankruptcy in a lot of cases, so simplifying the process and broadening its suitability can only be a good thing.
(PRWEB) March 5, 2006
The news that the Simple IVA is set to be introduced by the UK government to widen the availability of Individual Voluntary Arrangements has been warmly received by the Debt Help Site.
Reports suggest that the Simple IVA, or SIVA, will be available later in the year to simplify the IVA process and allow a greater number of people to take up the solution to serious debt and insolvency.
The IVA, or Individual Voluntary Arrangement, is an alternative to bankruptcy whereby the debtor can carry on in business and secure assets while repaying a greatly reduced debt over five years.
Currently, for an IVA to go ahead, creditors representing at least 75% of the debt must vote in favour of the arrangement. However, under the expected proposals for the Simple IVA, set to be announced later this month, the necessary majority will be reduced to 51% for debts under £25,000.
It is believed that a standard contract and process of application will be also introduced to simplify and speed up implementation of the IVA.
Terry Galvin, editor of the Debt Help Site, believes the imminent plans will represent an important step towards easing the UK debt burden.
Porter says: "With personal debt higher than ever in the UK and bankruptcies at record levels, the situation needs addressing.
"The IVA is the best solution to insolvency for many people and preferable to bankruptcy in a lot of cases, so simplifying the process and broadening its suitability can only be a good thing."
For more on IVAs, insolvency and debt solutions, visit http://www.debthelpsite.net
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