IVA Debt Solution – Using A UK IVA To Write Off Debt
Are you on the lookout for a solution to your debt
? If you are and you live in the United Kingdom, the Individual Voluntary Agreement might just be the financial solution that you are looking for. It is a debt solution originally meant to help small business owners, but has been modified to also write off the debts of those who need it the most, financially.
Basically, the IVA is a government initiated financial product which was introduced in 1986. It was originally meant to solve the financial problems of small business owners by writing off most of their debts if it seems too much for them to handle. Over the years, however, the conditions surrounding IVA has changed that it has now become one of the most sought after debt solutions for the average earner.
IVA Debt Solution: An Alternative to Bankruptcy?
So what are the benefits that you will get to enjoy when you use the IVA debt solution? First of all, the IVA debt solution is something that will allow you to reduce the amount of monthly payments for your debt. If you are in serious debt, the IVA serves as a better alternative to bankruptcy because it will legally terminate the harassment that you are getting from creditors.
The interest will be frozen, you will not risk losing assets and it is not as publicly known as bankruptcy. Naturally, there are also downsides to using the IVA debt solution. One major impact that it will have in your life is the IVA debt solution having a negative effect to your credit which will stay on your records for as long as five years.
How the IVA Works
So do the pros far outweigh the cons when it comes to using an individual voluntary arrangement as an alternative to bankruptcy? To help you make a more informed decision, let us take a look at the process involved in filing for an IVA:
A debt advisor will take a look at your overall financial situation.
If the advisor finds the IVA to be a viable solution, he or she will negotiate with the creditors on your behalf.
A creditor's meeting will be scheduled, when it will be determined whether your individual circumstances should entitle you to the IVA.
For the IVA to be given the go ahead, the creditors must approve to the proposal.
Once the arrangement is in place, you will be given a fixed amount that you must pay per month, which will be divided between your creditors. During the 5-year period that the IVA is active, creditors may not pursue any legal action against you and no additional interest will be charged.
After you have successfully gone through five years of payment, the IVA will be completed and the rest of your debts will be written off.
All in all, the IVA is a viable solution only when your individual circumstances deem it so. It may be one step better than bankruptcy, but if there is still a chance that you can work things out with your creditors, that is still a chance that you have to take.
IVA Debt Solution Using A UK IVA To Write Off Debt
By: K D Garrow
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