Is debt becoming a serious problem in your life? Are you on the verge of losing everything, trying to get out of this trouble? Are you thinking of declaring yourself bankrupt? If yes, then instead of losing hope you should seek help of debt IVA.
What debt IVA is
IVA stands for Individual Voluntary Arrangement. It is a formal debt solution that assists borrowers with overburdening debt problems. It is a legal agreement between you and your creditors, that, you will pay off your outstanding debts. IVA should be administered and proposed by an insolvency practitioner. However, you need to require certain circumstances to get your application approved.
Many credit counseling agencies offer debt IVA advice, to help you get out of debts. If your application gets approved, you will have to make reduced payments towards the total amount of debt. A percentage of the total will be paid off and you will be given 5 years to settle your debts.
Role of insolvency practitioner
The insolvency practitioner (IP) plays a very important role in debt management IVA. He will work on your behalf to find out the total amount of debts you owe. He will also calculate the interest rates of each debt. After that he will arrange for a meeting with your creditors. After the meeting he will present a proposal, on your behalf to your creditors, so that you may have lower interest rates on different loans. After the creditors receive the proposal, a receipt of the proposal will be logged. If at least 75% creditors (or creditors who own 75% of the debt), agree to the proposal, you will have a repayment plan. If someone wants to bring any change to your proposal, it will be upto you to adhere to the request for changes.
Advantages of IVA
The advantages of IVA are as follows:
Fixed term agreement: You will have to make repayments for a fixed term i.e. 5 years only.
Affordable monthly payments: You will have to make lower monthly payments, according to your affordability.
Privacy: Unlike a bankruptcy, the IVA agreement will not be published in the media, so it will be kept private only between you and your creditors. Your employers also need not have to informed about this.
Debt write-off: At the end of the IVA, your creditors will be obliged to write-off the outstanding debt balance of any unpaid debt.
Security to profession: If you are involved in such a profession, where opting for bankruptcy may ruin your career, IVA acts as a very good alternative to that, thus, providing security to your occupation.
Debt IVA is a very good alternative to bankruptcy. You can settle your debt accounts in a more appropriate and convenient way. After easily settling your debts over a fixed period of time, you can be a financially free man.