By Jon Hunter
If you are in debt and it has become extremely difficult for you to handle your debt and repayments to an extent that you cannot cope effectively anymore, then the best option you can consider to turn to is an Individual Voluntary Agreement which is commonly known as an IVA. IVA basically binds you in a contract with the creditor and lets you pay only what you are able to afford realistically (keeping your present circumstances into view).
One of the best and most feasible ways to avoid bankruptcy when you cannot afford your periodic repayments is to get an IVA. When you have an IVA, then you agree with your creditors to make payments on your outstanding debt, and these repayments are only which you can easily afford and not more than that.
IVA is carried out through an Insolvency Practitioner who has a license. The proposal made by the practitioner is negotiated with the creditors and a settlement is reached. The basic reason due to which you are able to pay whatever you can afford is that, if in other circumstances you are not able to make the repayments, you would have to declare bankruptcy and the cost of that claim is more for the creditors.
Under a typical IVA, you would agree to pay an amount of money for a specified period of time and the payments have to be monthly. The amount would be as close to what you can afford easily. The greatest advantage of having an IVA is that you would be able to make payments you can afford. This would not only be financially suitable for you but would also keep your creditor from taking any action against you.
The very reason that makes an IVA feasible for you and the creditor is the fact that it saves the creditor from incurring the cost of filing a claim against you, and you can make payments according to your condition and be debt free in matter of a few years.
Whether you have one creditor or more than one to whom you are indebted to, you can have an IVA with all of them. This binds you and your creditors in a legal agreement. The Insolvency Practitioner that you hire for the purpose of carrying out the agreement would make the proposal on your behalf.
This would give you the benefit as the payment plan is made by considering your financial situation. Hence, the payments you have to make are closest to your financial circumstances. An IVA is the most suitable way for both the creditor and the indebted to manage the debt, and it offers the best way to deal with the debt.
The person dealing with the debt has the advantage that the debt becomes relatively easier to manage, and other than the living costs you can spend the money on paying off the debt. This means that an IVA goes in favour of both the creditor and the indebted.
Are you looking for IVA Advice plans? Contact our Debt Company for all sorts of debt solutions.
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