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An IVA (individual voluntary arrangement) is a debt plan created to help those who cannot meet repayments to their creditors and are in need of urgent help. To qualify for IVAs, you must owe at least £15,000 to three or more creditors and have a minimum of £200 per month disposable income that can be divvied up between those to whom you owe money to pay off your debts. Firstly, though, you might ask the question: what is an IVA? Introduced in 1986, individual voluntary arrangements have become a popular way for individuals to get out of the debt trap. The arrangement allows for you to pay back affordable monthly sums over a specified timeframe, often of five years. While some creditors are not obliged to accept such an arrangement, many will because it means they can recoup at least some of the money owed to them. You can find out how to set up an IVA if you speak to an insolvency practitioner, who will help go through your budget with you and liaise with your creditors. You will be required to pay back as much as you can afford to every month but allowances will be made for your living costs so you don't find yourself short. Using an IVA can help wipe out up to 75 per cent of your debt over the period it is active. At the end, you'll usually be completely debt free, even if you haven't managed to pay back all you owe. This is just one of the benefits IVAs can afford. Another can be that you might not be forced to sell your home - in some situations your property will be altogether excluded from the scenario, while in other cases you will be advised to remortgage. With an IVA, your financial position will not be made public. Unlike with bankruptcy, your situation will not be published in the papers - the arrangement is almost entirely private - so you can keep things to yourself if you choose to. One point to consider, however, is that your credit rating is likely to be affected. This, you may decide, is worth it to become debt free and start repairing your fiscal standing. If you are in need of help with your debts, don't delay in contacting an insolvency practitioner today and take the first step to a better, debt free future. If you are struggling with debt problems, you may need to seek out advice from an impartial source and ask the question: a href="http://ww.debtoptions.co.uk/ivas">What is an IVA?. Debt Options can help you with a range of solutions to help get you out of the red, including individual voluntary arrangements (IVAs) and bankruptcy.
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