In the U.K., the Insolvency Service is responsible for making and regulating policy regarding personal indebtedness and individual insolvency. An alternative to bankruptcy called an Individual Involuntary Arrangement (IVA) was introduced by the government as part of the Insolvency Act 1986.

Clear Start is a national organization, with headquarters located in Hammersmith, London, that provides free to support to assist people with serious debt problems in the U.K. - England, Wales, Scotland and Northern Ireland. The total individual indebtedness must be ¢G1,000 or more and the minimum contribution to the debts must be ¢G100 or more per month. These unsecured personal debts can consist of personal loans and credit cards that the client can no longer afford to make the minimum monthly payments towards. Clear Start assists clients that own their own home as well as those who rent their homes.

Clear Start provides financial budgeting and planning, as well as debt counselling. The organization is authorized to handle IVA debt management plans and high volume IVA set up and supervision, as well as provide access to a panel of Insolvency Practitioners licensed by the U.K. Government. In addition, they are suppliers of saving and lending solutions and enable clients to have financial stability and growth after debt. Clear Start holds a Consumer Credit License, an Appointed Representative status as an introducer of mortgage business, a Data Protection License and is properly registered as a business.

Clear Start provides impartial advice after reviewing certain facts about a potential client. These facts include a list of debts; details of any property, mortgage and other borrowing; monthly income, after taxes; and the monthly cost of living expenses. After discussing these facts, the Insolvency Practitioner recommends various options and states their pros and cons. These options can include an IVA, debt management plans, consolidation and even possibly bankruptcy. When the client decides which option is the best overall, the Clear Start advisor can complete an application for the solution or pass on the pertinent details to an appropriate organization, based on the client's advice.

Many times, an IVA is recommended. An IVA offers to pay an affordable monthly amount into a fund over a period of five years, after which time the debts are cleared. This holds true even if the creditors ultimately end up getting less than 30% of their debts repaid. An IVA usually consists of sixty monthly payments at an agreed level, but can also include lump sum contributions from certain resources, such as a release of equity from a property. Monthly payments can be as little as ¢G250 per month, but are usually ¢G300 to ¢G400 per month. The application and set up process of an IVA takes about four to six weeks to accomplish. The process includes establishing the facts, gathering evidence, drafting an IVA proposal that must be agreed to by 75% or more of the creditors, reviewing and signing, forwarding to the creditors and voting by the creditors.

Once an IVA is established, all creditors must stop their pursuit of debts and interest is frozen on all debts. Payments are made into a fund that is governed by the Insolvency Practitioner. Payslip reviews occur every quarter and a full review of the debtor's situation is done every twelve months. The best candidates for an IVA have a minimum unsecured debt of ¢G15,000 to ¢G20,000 or more, have current minimum monthly payments of ¢G250 to ¢G300 or more and have a fairly stable monthly income. The period of time that legal action is stopped by an IVA is five years, as opposed to the three year period of a bankruptcy.

Clear Start handles hundreds of IVA applications per month and has all applicable licenses. They provide free advice and a way to discover the options reasonably available to clear up personal debt.