Benefits and Advantages of an IVA

There are still a lot of questions as to the benefits of entering into an Individual Voluntary Arrangement (IVA) and the advantages of resorting to such an arrangement. Coming into a situation where you constantly have to face the strain of handling huge amounts of debt is difficult on its own; and, in the same manner that every move you make in connection to your financial future must be carefully studied, knowing what the advantages of an IVA are is extremely necessary to ensure that it affects every part of your life in the most positive way possible.

Although debt consolidation is a perfectly sensible option for people who need help in restructuring their financial situation, it may not be as helpful as an IVA especially for those whose debt has gone over £15,000 in total and are on the brink of bankruptcy. With the use of an Individual Voluntary Arrangement, debtors are given a chance to settle all of their debt via a repayment schedule indicating an amount to be paid each month throughout a time frame of 3 to 5 years. Any IVA company can assist with an initial assessment of your monetary obligations and ascertain how much of your earnings may be allocated for debt settlement, taking into account the cost of your living expenses alongside payments for mortgages and other secured loans. An IVA document will then be drafted and then executed, pending the concurrence of the creditors to whom you owe at least 75% of your debt. Communicating with unethical debt collection agents or even filing for bankruptcy and having your property seized will no longer be a source of concern provided that you keep abiding by the arrangement. At the end of the repayment period, any remaining amount of debt will be written off and no legal action may be taken against you on account of it.

Remember that an IVA serves to settle only unsecured debts such as those incurred with the use of credit cards or a loan without neither a guarantor nor a collateral. Also, make sure to declare every creditor you owe payments to since only those who are listed will be bound by the terms of the arrangement. Consult with an IVA expert for more information on this matter as well as for useful debt advice to help you stay on track and experience the full benefits of an IVA.