IVA Description

An Individual Voluntary Arrangement or IVA is a legal agreement between the lenders and the borrowers in which both parties agree upon a re-structured program of repayment of debts. If you are heavily indebted and cannot make your monthly repayments any more, you can consult a professional debt advisor who will suggest you a debt solution to suit your individual situation. Highly indebted people think of filing bankruptcy as the last alternative but they forget that it not only ruins their credit report but also make them void of several rights of their own. By obtaining an IVA description from your advisor, you will realise that it is the most effective alternative to bankruptcy, which not only helps to save your credit report but also saves you from the shame of being bankrupt.

An IVA may last up to 5 years but it can range for any time depending upon the conditions of the agreement. Normally, the borrowers have to pay a certain amount of money for a particular period and after that period is over, the rest of the amount is written off as per the conditions laid in the agreement. This means that through IVA, an individual can save a significant amount of money, as you have to pay only a limited amount of money for a fixed period.

After accepting the IVA agreement, your creditors will not have any right to take any action against you and your assets will get protection from being seized by the creditors. When choosing an IVA company, you must employ a professional advisor who will have sufficient knowledge regarding the IVA process and will be able to guide you accordingly. Avoid employing a company which demands fees for preparing the papers. There are many companies out there who offer to do this job free of cost. Make sure that the company you have chosen carries out complete analysis for your individual situation so that they can advise you the best action to be taken.

Before making an IVA agreement, you must ensure that your debt is more than £18,000 and you have a fixed source of regular income. Also, make sure that you are able to pay the amount you have mentioned in the agreement every month.