IVA Debt Solution

An IVA Debt Solution can be one of the best forms of debt management to solve your debt problems. Through a professional and authorised IVA company, you can get an Insolvency practitioner assigned to yourself who will evaluate your debts and find a solution that suits your situation. These practitioners will work out an agreement between the debtors and the creditors so that a specific amount, affordable by the debtor, is regularly paid into the IVA for a particular period of time which is normally 5 years.

Some people mix the concept of IVA Debt Solution with that of bankruptcy but they are entirely different from each other. If you file for bankruptcy, you are declaring that you are no longer able to pay off your debts and you offer all your belongings to be sold in order to repay your debts. Bankruptcy also ruins your credit report and prohibits you from holding public office or membership of certain professional organisations. An IVA is entirely different from bankruptcy and the best thing is that an IVA company keeps all your transactions completely secret so that nobody comes to know about your weak financial status.

If you find that you are no longer able to make your monthly payments at the current rate of interest, you can make an agreement with your creditor to either reduce your interest rate or extend the term of loan or give some relaxation in the loan amount. This is generally not a problem with the creditors because they themselves want to avoid you from going bankrupt otherwise they will have to suffer from huge loss if your properties are not sufficient to pay off their debts. Normally, they will understand your financial problem and make an arrangement that will be comfortable for you as well as for themselves. The main thing that need to be kept into consideration is that although IVA is recorded on your credit file and prevents you from obtaining credit, successful completion may be viewed more favourably than bankruptcy.

Other advantages of IVA are:

• Interest will be frozen – creditors are not allowed to continue applying interest once an IVA has been agreed.
• You have to pay only an affordable amount of money every month – regular Income and Expenditure reviews will be carried out to ensure affordable contributions.
• You have avoided bankruptcy.
• Once an IVA is filed, the creditor cannot make any amendment in the agreed arrangement and neither can take legal action against you.
• You have saved your properties and other belonging that would have put at risk while filing bankruptcy.