IVA Articles
Articles and Information on everything related to IVAs
Student loans IVA
IVAs are designed to assist any person struggling with an overwhelming debt problem.
But what happens when one of the debts is owed to the Student Loan Company?
When debt repayments become too difficult to afford, often a person will take out further credit to cover the repayments, and thus find their situation worsening.
This is where an Individual Voluntary Arrangement (IVA) can help.
An IVA) is a new agreement with existing creditors. Monthly debt repayments are replaced with one monthly contribution into the IVA fund. The contributions to the IVA fund continue for the duration of the IVA, normally 60 months, after which time the debts will be considered settled. (If there is any debt not fully repaid through the IVA, the creditor concerned will be required to write off the remainder.)
Many graduates find themselves in an impossible position.
Years of studying, training, and exams, all for an opportunity to improve their future earning potential, whilst all the while finding themselves being buried in a mountain of personal debt.
One such debt could be to The Student Loan Company LTD, for they are the providers of student loans. Student loans are part of the government's financial support package for students, and are designed to assist students whilst in higher education in the UK.
Many graduates are simply unable to earn their way clear of their debt problems and consider the route of Bankruptcy as a method of making a clean financial start.
However, bankruptcy does not clear Student Loan Company debts, (see bottom of page) so now, for people with such loans, an IVA becomes the most suitable solution.
For more information on IVAs, download our free guide "The Truth about IVAs", or call free on 0800 088 7503 where our specialist team is waiting to answer your questions.
Student Loans Background.
After the introduction of the Enterprise Act in 2004, (where several amendments were made to the bankruptcy laws, which among other things, reduced the term of a bankruptcy to 12 months.) more and more students recognized the advantages of declaring themselves bankrupt to enable themselves to 'clean the financial slate' before commencing with the rest of their lives.
However, due to the sheer amount of graduates opting for the bankruptcy solution, the government made further changes and loans owed to The Student Loan Company were deemed no longer a provable debt in a bankruptcy.
For more information click student loans.
