By: Denise N. Fyffe.
Copyright © 2012, Poetess Defy, Denise N. Fyffe

Gambling can trigger many different adverse effects. Especially when you gambling away more than you can afford and use up your credit cards; also if you do not pay off your bill and loans and other financial obligations. A lot of people have to be seeking financial counselling because of their bad habits and not being able to curb these habits which lead to personal bankruptcy. There is an Individual Voluntary Arrangement. This agreement is simply a debt solution. Within a certain amount of time of paying on your debt consistently, you can claim an Individual Voluntary Arrangement. This can apply to things like your credit card debt, overdrafts and unsecured loans.

There was originally a certain way in which people who claimed bankruptcy was viewed. This no longer applies; especially in this economic times. The Individual Voluntary Arrangement permits you to do away with your debt obligations or personal bankruptcy obligations after you have made approximately sixty monthly payments. To do this you debt has to be well over fifteen thousand pounds. It must have been related to unsecured liabilities. If you do not owe that much then a better plan for you is the Debt Management plan.

Those who have several different financial problems including personal bankruptcy or fall into certain categories are best suited for an Individual Voluntary Arrangement. These include home owners, people who have professional status to protect, or who have gambling debts; and especially if you do not wish your situation to be made public. For home owners, if they declare bankruptcy they are guaranteed to lose their home. The IVA allows these home owners to still have their homes and can do a remortgage after four years.

Certain professionals are not allowed to file for bankruptcy. This includes accountants and lawyers. For those people with a gambling debt they may have a Bankruptcy Restriction Order (BRO) is in place so that they cannot take advantage of the bankruptcy clause. Hence they may be held accountable for fifteen years for their debt. With the Individual Voluntary Arrangement, your finances are spared the fine tooth comb treatment and you can be rid of your debt in about sixty payments.

For people who are interested in getting this service you will need an Insolvency Practitioner. They are paid based on the increasing contributions at the end of the Individual Voluntary Arrangement’s sixty month term. The contract is legally binding and is for creditor’s unsecured loans that you may owe, as a debtor. But it must be agreed upon by at least seventy five percent of your creditors, or for seventy five percent of what you owe; then it will apply to all, regardless. You can be taken to court if you default on the agreement. So you must ensure you pay for all sixty months. Follow these guidelines to fight your way out of personal bankruptcy.