Amnesty between banks and debt agencies to be announced
February 1, 2008
According to a recent report next week will see the announcement of an amnesty between firms that sell debt plans for those in high levels of debt and the banks, who often fight to try and recoup the money that they have loaned out to consumers. More and more people have been finding themselves in high levels of unmanageable debt, and for many the only option has been bankruptcy.
IVAs, or Individual Voluntary Arrangements, have been advertised heavily over the last few years. However, there has been a problem for those that try to take the IVA route, in that banks have been refusing to accept many consumers for an IVA, leaving them with no option but to go for bankruptcy. An IVA is known as a softer alternative to bankruptcy, and consumers must meet the necessary eligibility criteria in order to opt for this route.
The forthcoming amnesty means that IVAs as far more likely to be accepted by banks, and therefore fewer consumers will have to opt for bankruptcy. The move is being welcomed by debt agencies and the debt industry as a whole. The final document is to be published next week by the Insolvency Service. In the meantime there are a few areas that are still being addresses and a few issues to iron out.
An official from Debt Free Direct stated: ‘All this does is tighten up and simplify what’s already in place. I’m not sure we will be forwarding more people for an IVA, but this means that more people should be accepted and less will have to resort to bankruptcy.’
He also added that nobody on an IVA would lose their home as a result of the IVA, which is something that many people looking into this course of action are afraid of.
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My personal bank is USAA (United Services Automobile Association), odd name but a huge bank with tons of services. It’ s where I do my banking, insurance, loans and have a credit card. They are very good but only available to current and former members of the armed services. If you have somebody in your family that is a current or former military service member you should check to see if you can get an account there. Once you’ re in, you’ re in for life: http:// http://www. usaa.