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Why an IVA Could Be a Better Option than Bankruptcy

In the current harsh economic climate of ever rising costs and increasing redundancies, many are faced with making some tough financial decisions. Indeed, when matters come to a head many people are finding they have little option but to file for bankruptcy. However, there is another option, which is by no means painless, but may turn out to be a far better choice. This is the option of an IVA.

The Drawbacks of Bankruptcy

Things have improved in recent years for individuals who have opted for bankruptcy. For example, people who choose this option are now discharged after only a year. However, this route still has its drawbacks. For instance, even after the individual has been formally discharged, the decision to opt for bankruptcy will remain on their credit report for a term of at least five years. This means getting a mortgage or bank account will be nigh on impossible and even obtaining a mobile phone contract will not be easy.

In fact, a creditor can obtain a bankruptcy order even if they are owed little more than £750. The debtor will then have to declare themselves bankrupt through the county courts whereby the debtor’s assets will be declared and sold to cover the debt. Whilst many assets are exempt from repossession, including cars and pensions, there is always the possibility that the debtor may lose their house.

In addition, filing for bankruptcy has the disadvantage of being an entirely public affair. Many institutions, including the debtor’s bank, will have to be informed of the bankruptcy decision and the case will also be published in various newspapers. These are just some of the reasons why many people believe that an IVA is the far better option.

Why An IVA May Be Better

IVAs or Individual Voluntary Arrangements have been introduced fairly recently in order to offer an alternative to bankruptcy. However, IVAs tend to be restricted to debts that involve credit cards, personal loans or other types of ‘unsecured loans’. Whilst an IVA is legally binding, it offers the debtor the opportunity to settle the debt or debts within a certain period. Hopefully this period is one that the debtor feels is reasonable, although more often than not, the limit is set to a period of five years.

In addition, whilst the creditors can advance alterations to the proposal, the debtor has the right to choose either to accept the alterations or to refuse them. All debt and interest charges will also be frozen and no additional demands can be made by the creditor.

An IVA is also a much more private affair. Nothing will be published in the papers for example. The costs of IVAs can be large and may include having to pay a fee upfront, but the debtor will not have the stigma of a so-called “bankruptcy restrictions order” which will make future arrangements difficult and can be imposed for up to fifteen years.

However, it is vital to remember that you only have the option of an IVA if you have the means to pay the debts off and, if any repayments are missed, the debtor can still be forced to file for bankruptcy anyway.

 

If you’d like more information about IVAs, click here to visit the IVA Expert website.

 

No Comments by  /  May 17, 2012  /  Posted in: Legal Matters
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How to Fix Your Bad Credit Rating

With the current economic crisis, most people find refuge in loans. For them, it is the best way to fulfill their financial needs. But what if you have bad credit score, can you still apply for loans?

Loans with bad credit unfortunately give you the least probability of approval if you’re applying for a loan. Good news is, the options are not completely gone but they may be limited and more likely than not, you will face unfavorable financing terms. Because you are a higher risk borrower, with your history shows strong possibility that you will not continue to pay your debt as agreed upon, the lenders will protect themselves by charging you much higher interest rates than the average. And because you need money badly, it is easy for you to get into these expensive traps.

There are however, ways that can help you fix and overcome your bad credit score.

  • Analyze your credit report. Review your credit report at least once a year. See if there are any inaccuracies and make certain that all of the information is correct.
  •  Make your payments on time. Past due or delinquent accounts have negative effect on your credit rating. On the contrary, your credit rating will likely improve as you keep on paying your bills promptly.
  •  Reduce the number of credit cards you carry. Most credit cards carry high interest rates. This can likely get you in trouble if you are undisciplined holder.
  •  Keep your oldest credit card active.  Certain percentage of your credit score is determined by the age of your credit file. Lenders check on your payment history and this can help determine the credit score they give you.

Poor credit score could have a major effect in your life for it affects more than just a credit card. It would be hard for you to get student loan, car loan, housing loan and worst, it will probably be more difficult for you to have access to money when you actually need it.  It is not too late to change and turn out your bad credit history to a very good one.

 

 

No Comments by  /  May 16, 2012  /  Posted in: How To's, Loans
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British Gas Business – Keeping your businesses safe from the cold

Business gas is an important priority in most enterprises, because regardless of the size of the establishment, or the industry you work in, gas appliances often keep buildings warm, allowing the workforce to be comfortable, and thus letting them perform better throughout the day. If businesses also rely on customers to make them thrive, business gas is vital for creating a warm, environment which is conducive to keeping people interested while they browse and spend money. Should the boiler or central heating in your business building break down, the establishment would quickly become cold and inviting, impacting negatively on daily productivity, and losing the company money in the middle of a difficult financial time.

British Gas understand that business owners need a gas supply that they can rely on, which is why they have a team of emergency gas engineers who work 24/7 to ensure that homes and businesses spend as little time without heat as possible. This means that should the worst happen, your business will be up and running in no time, reducing the risk of having to close due to poor working conditions, and saving companies time and money.

 

 

No Comments by  /  May 14, 2012  /  Posted in: Business Essentials, Economy
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Passive Income

Carefully managing life so that a substantial percentage of one’s earnings is not only achieved through hard work is the simplest way to realize financial freedom. One way to obtain this is having a “Passive Income“.

The principle of passive income is that it is simply the money gained with little or no effort required to sustain the flow of income in the event the initial work, (i.e. paper works or documentation)  has already been accomplished.

Common examples of passive income are as follows:

  • Rent from real estate properties
  • Patent royalties for an invention, royalties from books or other original works
  • Trademark licensing fees for characters or brands you’ve created
  • Profits from businesses in which you have little or no day-to-day role or responsibility
  • Earnings from Internet advertisements in a blog or on a website you own
  • Dividends from stocks, Real Estate Investment Trust (REIT), equity mutual funds, or other equity securities
  • Interest from owning bonds, savings or time deposits
  • Pensions

Unlike Active Income where individuals must continue to work hard and receive the same pay rate to maintain the lifestyle that they have, passive income allows someone to spend time on things he truly enjoy.

 

Source: About.com – Investing for Beginners

No Comments by  /  May 12, 2012  /  Posted in: Investment and Finance
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Being Smart About Business Energy Billing

No-one wants to pay for gas and electricity they haven’t used. As well as not wanting to, few businesses can afford to.  British Gas Business don’t want their customers to be paying an unfair amount either which is why they are offering business customers, subject to status and terms and conditions, free smart meters.

Estimated billing.
Previously, gas and electricity companies relied on manual meter readings or estimates about usage to calculate the energy bill. What this resulted in was businesses paying out more because the estimated amounts could be higher than the actual usage.

Moving forward with smart meters.
British Gas Business are keen advocates for the use of smart meters. Smart meters transmit real time usage information every half an hour to the billing system which means that when the bill arrives you can be confident that you are only paying for what you have actually used.

Using the data from smart meters.
British Gas Business can use the data sent by the smart meter to see when energy is being used and when it is costing most. This information is used to advise customers and take further steps towards cutting costs.

British Gas Business is keen, along with the government and energy ministers to completely eliminate the need for estimated billing. Contact British Gas Business to see how smart meters and other services they offer can save your business money.

10 Comments by  /  May 10, 2012  /  Posted in: Business Essentials, Economy
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Business Writing in a Corporate Environment

Communication occupies a major part of the growth of a business. Aside from email and traditional business letters, writing presentations, inter-office memos, training materials and other documents are some of the tasks done in the corporate environment whether one runs his own small business or he is an employee in a multinational corporation. However not all business people are properly equipped or lack business writing skills. Business Writing as a subject in a business course may not be enough to get students to be effective in written communication.

It is essential to someone who is in the corporate world to enhance not only his specific skills but also develop his writing skills as this can help in improving his marketability and promotion.

Here are some tips in strengthening one’s business writing skills:

Go straight to the point. Although concise information is important in business writing, going directly to the main topic is also essential as more people nowadays are not willing to read. So might as well bring out the information without using words that could mislead and only give confusion. Use layman’s words for everyone to understand and business terms for people around the environment.

Check thoroughly. Everybody commits typographical errors and sadly, people judge by these mistakes. Spend time to check on these written documents. Include names, genders and titles in the checking. Make sure to get the right information about the person. Ask from their assistants if the job title or even spelling of their names is not clear. It is advised to review after it’s done and go though it again after an hour or maybe two to double check, of course not in a rush situation.

Check the tone. People may sometimes be in a not so good emotional situation while writing a letter or memo. It is better to reread the letter after emotions have passed to examine it and make sure that it reflects what one wants to say and how he really wants to say it before bringing it out.

Save the formats. If one thinks he has done a great job in writing a letter or a memo, store this document for future use. This would also help him save time and embarrassment from committing the same mistakes again.

Professionalism in writing. Choose the right words when writing. Correspondences are sometimes stored for future references and jokes, smileys or informal phrases have no room in business communication.

It may be difficult for some to express their thoughts in writing especially in a business concept but keeping in mind these simple tips can be a start and could take them a long way.

 

 

 

 

 

No Comments by  /  May 9, 2012  /  Posted in: Business Essentials
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Hip Hop Clothes

For several years since the 1990s, many young people made hip hop clothes their fashion statement. From elementary to college students, baggy pants, oversized shirts, baseball caps, and bling were the in things, especially since people often see these in music videos worn by both white and colored artists. This new fashion was really much to the dismay of parents who would rather see their children in more “socially acceptable” clothing.

Eventually, this kind of style evolved in other countries where new fashion statements arose, like skinny jeans and muscle shirts. The young people who were into hip hop clothing eventually finished college and had to find jobs. Therefore, they had to ditch their street clothes in order to look more corporate in job interviews.

However, that doesn’t mean that the hip hop style is gone. It endures among the people who started it in the first place. Moreover, their styles have evolved, too, considering that they now use different kinds of materials and accessories. Some signature labels even carry designer hip hop clothing.

It is just great that the sub-culture fashion of hip hop has stayed for many decades and has evolved to become a part of mainstream style. Now, it knows no color or race, because after all, comfortable street wear is just what everybody wants.

12 Comments by  /  May 8, 2012  /  Posted in: Other Matters
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