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Many people have found themselves in severe debt in recent years and if this is your situation now, an individual voluntary arrangement (IVA) may be the best way forward for you. IVAs have been around since 1986, but many people will not be aware of what they are and how they may be able to help you if your debts have become too large to manage. So what is an IVA? These are arrangements that you make via an insolvency practitioner with your creditors to make reduced overall payments to them, thus cutting the amount owed overall. It means that a proposal is made to pay a certain percentage and if 75 per cent of creditors agree, then any who do not are legally obliged to accept the deal. The reason many creditors will agree to an IVA is that under this form of insolvency, they are more likely to get more of their money back than if you declared yourself bankrupt, so it can be in their interests to back the arrangement. And an IVA can be good news for you as well. If you declared yourself bankrupt, it would have a much greater impact on your future ability to access credit and other financial services. Also, while an IVA will still require you to be disciplined and meet the payments each month, the cost will be less than before and by setting an end date, you can look forward to the future knowing the day is coming when you will be free from the debt. If you are a homeowner, you may have to remortgage your home for an IVA, but you will not lose it. In addition to this, an IVA gives you privacy in the same way as any other credit agreement, with this being an arrangement that nobody needs to know about. In contrast, if you are made bankrupt this can be publicly revealed by the local press and is automatically published in the London Gazette. By taking out an IVA, you may be able to reduce your liabilities by as much as three-quarters. It will still leave you having to budget carefully to meet your payments, but it can give you a viable way out of a personal financial situation that might otherwise be overwhelming. If you're looking for an IVAs, then Debt Options can help you find the right strategy to help you with your financial problems. If you are asking what is an IVA and what can it do for you, our team has over 11 years' experience assisting people with serious debt problems and know how these products can help.
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