If you want a relief for yourself from paying off all the debt that you owe, Individual Voluntary Arrangement (IVA) is the best option you can have. This is the perfect solution for those who wish to avoid the problem of bankruptcy or who are already bankrupted.
Insolvency Act 1986 was the parent enactment of IVA. An Insolvency Expert presents a scheme in front of the creditors. The requirements and the financial conditions of the debtor are the main issues that are to be considered while plotting the proposal. IVA not only facilitates the debtor but also supports the creditors as through this agreement one has to pay the amount decided among both of them. This payment is far better for the creditor than no payments, as in case of bankruptcy. But surely, a cooperating settlement must be made between the two parties.
There are many advantages of an IVA. It reduces your debt to a level that it is affordable, and also reduces the time period in which you can hope to be debt free. On an average, most people who opt for IVA are debt free in three to five years. According to the terms of the IVA, you need to pay a fixed monthly payment that is according to your income and affordability. During the period of the IVA, the creditors cannot increase your payments or the interest on it, and neither can they harass you for money. Thus, it makes the debt repayment process much simpler, and allows you to be debt free in a matter of time.
One among the several benefits of an IVA is that, contrary to a bankruptcy case, the reputation and honour of the people remains preserved as they are not advertised in the newspapers like a bankruptcy filing; in most of the cases of bankruptcy, people quit their professional positions or divulge the loss to their business equals. But, IVA is simply more classified and reliable. The chief principle of IVA is that it does not transfer the control of the belongings or acreage of the debtor and the person lingers with his possessions without fearing a legal action.
An IVA offers debtors an affordable option and ensures that bankruptcy is not the last resort. Upon completion of the time period of an IVA, the remaining debt is written off and the debtor becomes debt free, assuming that all payments have been successfully made. It offers peace of mind and relief from stress, as you can be sure in this situation that your creditors will no longer be harassing you for payments, or take any legal action against you.
Although an IVA can ensure that you are debt free in around five years, it must be kept in mind that this is a big commitment. People entering into an IVA must be sure if they can or cannot make the payments for the time period decided, or they may have to face legal action in the future.
Author Resource:
Edward Woodwards is a financial consultant. You can take iva advice and solutions to debt problems. Find out more information at his recommended website http://www.iva.org.uk .
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