Economics Finance

The outdoor and leisure clothing retailer Blacks is planning to resolve its financial difficulties by agreeing a Company Voluntary Arrangement (CVA) with its creditors. Yet more evidence that creditors are starting to understand the value of CVAs for restructuring struggling companies.

According to recent reports, outdoor and leisure clothing retailer Blacks Leisure, (Blacks, Millets and Free Spirit) is likely to agree a Company Voluntary Arrangement with its creditors within the next few weeks. This agreement will allow Blacks to close unwanted stores, and gain the support of its creditors to survive.

What is a CVA?

In simple terms a CVA is an agreement where a company’s creditors decide to accept reduced payments and write off debt. This releases the burden of debt on the struggling business and frees up cash to enable it to continue to trade. As a result of the CVA, creditors not only agree that they will write off a certain amount of the money that they are owed. They also have the opportunity to continue to trade with the company into the future. This is certainly a better prospect than the total failure of the business and the likelihood that there will be no returns for creditors at all.

Why has CVA had bad press?

Not uniquely among business recovery service solutions, CVAs have attracted some criticism. Creditors argue that they are forced to accept the terms of a CVA because if they do not, they are threatened with the closure of the company and that they will be left with nothing. In reality this is a flawed argument because a company would only consider a CVA in the first place if it is struggling to repay its debts and facing liquidation. If this situation were allowed to happen, the creditors would lose everything anyway. Continue reading ‘Company Voluntary Arrangement (CVA) Now More Accepted by Creditors’ »

Debt is becoming a serious problem for many people as the economy remains in recession, but is bankruptcy a good way of escaping your debt problems?

This article discusses the impact of bankruptcy to help you decide if this is a good way of freeing yourself from your debts.

Bankruptcy is one of the forms of insolvency available for people who are unable to settle their debts. It is a legally binding agreement between you and your creditors that protects them from pursuing you for the money that you owe.

As debt problems mount, you can actually voluntarily declare yourself bankrupt if you owe more than £750. Your creditors also have the power to force you into bankruptcy should they feel that there is no other alternative.

Bankruptcy has major implications that you should consider carefully if you are facing a worsening debt crisis. Continue reading ‘Is Bankruptcy a Good Way of Escaping Worsening Debt?’ »

Are you in over your head with bills? Do you feel like you’re drowning in past poor decisions? And no matter what you do they never seem to get off your back? It’s a sad state to be in when you feel debt has suddenly piled up and taken over while income seems to have reduced or gone out of the window completely. If you’re feeling overwhelmed by credit card debt you think will never be paid off, your thoughts may have already turned to bankruptcy.

Although applying for bankruptcy could be the only way to get creditors off your back, it still imposes a heavy price to pay. The implications may and usually do outweigh the advantages. Before you decide to file, consider the multitude of risks that bankruptcy brings. Filing for bankruptcy means a lasting mark on your credit report. Most bankruptcies will haunt a credit report for up to 10 years. The law allows the information to be public and therefore is stored for a considerable amount of time. With the electronic nature of records, many of those public bankruptcy records can be easily found by anyone. For just a few dollars people can purchase a record of you online. And any banks you deal with in the future will know about your bankruptcy and will consider you a poor risk because of your obvious poor money management. Continue reading ‘Bankruptcy – Think About It’ »

IVA Solutions is your answer to getting out of debt permanently and quickly.

In this article I will explain and give you 4 major reasons why an IVA could possible be the best solution for you to wipe all your debts off in 60 months or less.

1) IVA could wipe up to 75% of your Debt

IVA is short for Individual Voluntary Agreement; it is a government scheme which allows people who are struggling with paying off there creditors to re-arrange privately through a insolvency practitioner a amount of money which they can afford to pay off; the rest of the debt will be wipe off after 60 months.

For example using my own scenario I had £29,000 of debt and its calculated I would pay around £15,000 off my debt by the end of the 60 months and the £14,000 would be wipe off, and then my slate is clean.

The variation between how much is wipe off is determine by your personnel circumstances, I know a few people who had up to 70& to 75% of the debt wipe off and had double the amount of debt than I.

2)IVA is a private matter unlike Bankruptcy

IVA is a real solution to paying off your debt unlike bankruptcy, where it is more to do with avoiding paying your debts off.

Now IVA as I said is a private matter between you and your creditor and once you agree on a amount you can afford to pay monthly well that’s it, until you pay you last 60 month payment and then you can rebuild your credit score.

With bankruptcy, you name will be highlighted in the local papers, there is social stigma attach to being bankrupt plus you will not be allowed to do certain jobs like being a company director. Continue reading ‘How to Get Out of Debt Fast With a IVA’ »

As an individual, you will need to get an administration order when your creditors are threatening to take legal action against you, or when there is a county court judgment against you. At least two creditors are threatening legal action against you or your debts do not exceed five thousand pounds.

If you are in debt and your creditors are harassing you for repayment, you can get legal counsel to help you negotiate a repayment scheme with your creditors. You can also apply for IVA to your local county court. Alternatively, you can apply for an administration-order. It is better to apply for an administration-order than getting threats from your creditors. Why face the embarrassment in front of your family or your colleagues from your creditors.

You can apply for an administration-order by applying to a county court. You are required to fill a court form (N92), which is obtainable from your local court office. You need to list all your debts, which should not exceed five thousand pounds. Each individual has to file separate forms. In case a couple has a joint debt, it has to be divided and separate forms need to be filed. Continue reading ‘How Bad Does it Have to Get to Need an Administration Order?’ »

If you have credit cards, you may have thought about using a credit card consolidation company. You also may have thought about handling the problem yourself. If you have then you may want to understand what credit card debt consolidation is and how it may be able to help you.

Is Credit Card Consolidation A Good Thing?

There are many reasons why this kind of service may be good for you. The first is that it will reduce the number of creditors that you are paying each month. This can take the worry out of paying all of those bills because of credit cards. You will only have the one bill to take care of each month in regards to the credit cards.

Another reason that it may be a good thing is that the company that you are working with may be able to reduce the amount that you are paying for your credit card payments. This can help you to make the payment easier and will help you to get out of debt sooner.

Another good reason is that you may not be able to get as much done for your credit card bills as a company that works with this kind of debt. They may be able to help you get a better rate for those as well as get out of debt faster. You may not have had the pull to get the credit card companies to do this on your own, but the credit consolidation company can. Continue reading ‘Is Credit Card Debt Consolidation a Good Or Bad Thing?’ »

Debt settlement is commonly known as debt negotiation. It is one of the debt solving methods for people who are burdened with huge debt. This kind of settlement involves the negotiation with creditors with the main purpose of reducing the pay off amount to resolve the outstanding balances.

There are many benefits of having this solution. Firstly, the debtors will be able to relieve themselves from financial hardships. The creditors and debt collection agencies will stop disturbing them with non stop phone calls and reminder letters. There is no more legal action being taken by the creditors. In other words, the debtors will not be sued for bankruptcy and they don’t need to worry that they will lose their assets.

Secondly, the debtors are in fact standing at a better financial position. MONEY is the most solid benefit they can gain from debt negotiation. Through the negotiation process with the creditors, the debtors are able to settle their debt by paying a lesser amount of the actual debt. Saving a substantial amount of money is indeed possible. Some good debt settlement companies manage to assist their clients to save about 50% of their money.

Continue reading ‘Key Benefits of Debt Settlement’ »