A few years ago if you had debts and could afford to pay something to the debts an IVA was a good option, but there have been quite a few changes lately.

One change that is obvious is the economy and people losing their jobs.  Years ago when employment was a bit stronger, making a commitment to a five (5) year repayment plan was easy to do, not so today.

As more and more people lose their jobs and can no longer afford their IVA payments, what can they do?

One is they can look at bankruptcy, another is to look at a Debt Management Plan.

If you have property and it has equity, the DMP is a stronger option, as in bankruptcy the property could be an issue.  However, if you have no job, no income and no longer can afford or want the property, then bankruptcy is an option.

A Debt Management Plan is also a good option for people who need to sort out their debts, but are unsure about making a commitment to a formal plan such as an IVA.  Maybe they are unsure of their job stability, but need a way to sort things now; then a DMP is a possible solution.

It is just a sign of the times really, as work/employment becomes scarce and people are unsure of their employment stability, it is difficult to make a commitment for that time period.

One auto maker has started a new scheme in America to help get people to buy their cars; if you finance a car through them and lose your job, through no means of your own within 12 months of buying and financing the car, they will buy it back from you and pay off the financing.  This preserves your credit and is an incentive for people to buy from that company.

Not such a bad idea and one that could be expanded into other areas.