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Jul 13, 2006
An executive from
non-for-profit financial crisis center Myvesta UK
has noted that Britons with debt problems have greater access to various
resources for debt assistance compared with their US counterparts.
“Currently in the United States
those people who have fallen behind on their bills and are now facing large,
insurmountable debt loads have only two options, bankruptcy or nothing. And
with recently passed legislation in the US, it is even harder for individuals
to declare themselves bankrupt,” says Steve Rhode, chairman of Myvesta UK. As a
result, Rhode points out that an increasing number of people have been put into
payment plans they cannot afford, or have become slaves to their creditors. “In
the UK,
individuals have access to IVAs, which are in my mind the most powerful
solution available to people in debt,” Rhode explained.
IVA stands for
Individual Voluntary Arrangement, a formal agreement between consumers and
creditors that allows individuals to pay off their debts over a five-year
period without going bankrupt. “Not only are IVAs revolutionary in that they
allow consumers to fairly and equitably pay off their debts, but they are a
custom solution based on what an individual can realistically afford to pay
back to their creditors,” Rhode added.
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