Despite the record level of insolvencies in the UK, the Bank of England again has raised interest rates taking them up to 5.5% which is a six year high. It is expected that at least one more rise will take place this year as the bank attempts to keep a tight control on inflation. These increases are hurting businesses especially in the construction industry as the property market slows and first time buyers in particular feel the squeeze. Continue reading
Author: Paddy Byrne
Self Employed Workers and IVAs
Over the past few months there have been numerous press articles concerning the increasing level of personal insolvencies and in particular Voluntary Arrangements (IVA’s). IVA’s were introduced in England and Wales in 1986 followed by Northern Ireland in 1989. Initially, they were aimed specifically at trading businesses and the self employed but are now most commonly used by individuals who have amassed uncontrolled levels of unsecured debt. Continue reading
Challenges to the Irish State on the topic of Consumer Debt
It guaranteed to hit the ground sprinting and the new Irish Government will soon be a hundred days in office. It is fully committed to achieve a lot of adjustments and that being said perhaps now is the occasion to ask various concerns as to precisely what it is providing concerning the ordinary person as distinct from what it is working on in relation to finance companies, builders, NAMA and sovereign interest rates in its admittedly stressful initiatives to meet its committed EU and IMF performance targets. Continue reading
Options For Debtors And Lenders
When confronted with enormous financial debt worries it’s easy for the solitary borrower to neglect the effect of non-payment or late settlement on creditors. The financial institution is frequently considered as the big bad wolf and not worthy of any sort of sympathy from the beleaguered person in debt. The reality is that creditors have a vested interest in the fundamental alternatives that the borrower takes in order to resolve debt matters. Financial institutions can be helpful and amenable especially when the consumer spots and confronts debt difficulties at an early stage with a view to remedying them to everybody’s satisfaction. What are the choices for the borrower? Continue reading
Insolvency while Pregnant
Recently published figures estimate that the cost of rearing a child from birth to twenty one years of age can be up to £200,000. Let us suppose that you are in an IVA and become pregnant. The prospect of trying to sustain your IVA during your pregnancy and especially after the birth of your baby can be a daunting one. The undoubted joy of having a baby must be tempered with the reality that financial pressures will increase. Nevertheless, many debtors in IVAs have successfully overcome the challenges posed in these circumstances. Continue reading
How will my mortgage be affected by an IVA?
An IVA is a formal agreement between you and your unsecured creditors to repay a portion of your debt over a limited period of time – usually five years, but it can be for a shorter period.
Creditors expect to receive the full contractual repayments on their secured loans over the life of the IVA and thereafter. If you have a mortgage, you will be expected to make the monthly mortgage payments to your mortgage provider in full.
Continue reading