Fergie to get IVA?

An individual voluntary arrangement (IVA) may be the next resort for the Duchess of York in her ongoing battle against severe debts.

The Daily Mail has reported that, despite receiving a sum of £1.5 million from former husband Prince Andrew to help reduce her arrears, this still left here owing £2 million and she has tried to reach an agreement with her creditors to take a quarter of the amount owed.

Fergie’s 25 pence in the pound offer noted she could resort to an IVA if needed, which could leave them with even less, while the ultimate resort would be bankruptcy.

The deal offered needed all the creditors to agree and according to the paper, not all have.

With an IVA, this does not apply, as it only needs 75 per cent of those owed money to accept the proposed lower amount for it to become legally binding for all parties, meaning dissatisfied creditors in the minority have no choice but to comply.

IVAs can be sought by anyone with debts of £15,000 or over and can provide a viable alternative to bankruptcy.

And for those who are less famous than the Duchess of York, they can also maintain secrecy about an individual’s debts, as – unlike with bankruptcy – such a deal is confidential.

While most women do not have lives or finances to compare with that of the former royal, a recently published poll did suggest they are more concerned about the state of their finances than men.

The Institute of Financial Planning survey found 57 per cent of women lacked confidence in their ability to enact their future money plans, compared with only 46 per cent of men.