IVAstands for Individual Voluntary Arrangement. This is a practical solution that could offer you with a way out of debt.
With an IVA you will voluntarily enter into a debt resolving plan agreement with your creditors. This will enable you to avoid the necessity of serious proceedings such as court appearances and bankruptcy. With an IVA you could work towards a debt free life in just 5 years.
What Exactly is an IVA?
An IVA is a legal agreement which can help you to plan your way out of debt. With an IVA you will agree to pay a certain amount of money back to your creditors each month. In return for this creditors will agree to freeze interest and charges during the period of the IVA. This will give you the best chance possible to pay off your debts at a realistic schedule you can stick to.
Many people try desperately to pay off their debts only to be hampered by hefty charges and interest. These extra costs push the debts up to levels that they cannot possibly afford. With an IVA you will be able to control your debt more effectively and protect yourself from rising costs through interest and charges.
Who Should Consider IVAs?
If you want to take positive steps to a debt free future then you should consider an IVA. This type of agreement works best for those people with a regular income who are struggling to manage existing debts. With an IVA you can set in place positive plans for repayment at costs that you can realistically afford. This can be a great alternative to bankruptcy for both the debtor and the creditors.
How to Get Started
If you are interested in setting up an IVA you will need to talk a specialist debt advisor. They will be able discuss your options with you and also nominate you for this type of plan.
· The debt advisor will then be able to help you write up your proposals for your offer of repayment.
· This will tell your creditors what you can afford to repay over the period of the IVA (typically 5 years).
· If the majority of your creditors (at least 75%) agree to these terms then your IVA can be approved and will become legally binding for you and your creditors.
Setting in place an IVA can be a practical way of tackling your debts. Get as much advice as you need from a specialist debt advisor to help you understand the implications of this debt solution.