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Personal Debt

If you're suffering from personal debt problems, the situation can feel intensely overwhelming. However, it may be helpful to know that you are certainly not alone, with total personal debt in the UK standing at almost £1.5 trillion. Of those households that have personal debt, the average amount excluding mortgages is over £20,000. Including mortgages, the average adult in the UK actually owes a quarter more than the average UK gross salary. The result has been literally hundreds of people being declared insolvent every day in 2009, along with thousands of County Court Judgements (over 2000 per day on average).

In recognition of the problem of personal debt, the government has launched new alternatives to bankruptcy and other traditional more formal measures. The main one of these is the Independent Voluntary Agreement, or IVA, which normally exists for a period of five years, and payments are made towards unsecured personal debt in line with what it is calculated you can afford. At the end of the IVA period, as long as you have kept to the payment plan, the entirety of debt is considered paid - even though the whole of the debt will not actually have been paid back in that period. Bankruptcy proceedings are more serious, and are generally used where there is significant debt secured on property. A debt specialist will be able to advise on the best option to take in your circumstances, the issues with any route you take and help you to ensure documentation is completed accurately so you get the very best possible outcome.

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