Katie Price IVA
The former glamour model known as Jordan, has had an IVA accepted to cover her £22,000 debts.
Katie Price has avoided bankruptcy after her creditors agreed to accept a proposal for an individual voluntary arrangement (IVA) to repay her £22,000 debts. She will now be able to keep her house and other assets.
Although the terms of the IVA, and who the creditors actually were, the HMRC have confirmed that they were amongst them, a spokesman said, “This is a better result for her and her creditors.”
Although we don’t like to see anyone struggling with debt, we try to highlight the ‘celebrity’ cases, as it shows that you are not alone in this problem, people from all walks of life find themselves struggling with debt.
An individual voluntary arrangement (IVA) is a legal procedure for people in financial difficulties with unsecured debts. It is a legal agreement between you and your creditors to only pay what you can actually afford to pay off your debts.
The arrangement will stop any further interest and charges being added to your debts, and normally lasts 60 months (although occasionally 72). You will be legally required to pay the agreed monthly payment, and at the end of five years anything remaining (up to 80%!) will be legally written off.
Are You Struggling With Debts?
If, like Katie Price, you are struggling to repay your debts, contact our friendly advisers and see how they can help. They advice is free and there is no obligation to use any of the services we may suggest.
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