Firstly, what is an IVA? Well, an Individual Voluntary Agreement is an agreement made between yourself and your creditors. Importantly, this agreement is a legally binding one. It’s a settlement that frequently lasts five years, where during that time frame you’ll be expected to pay only what you can afford outside of your usual living costs.
Unfortunately, life is very unpredictable, and circumstances can change in the blink of an eye. Obstacles in life such as divorce or redundancy cannot always be predicted and could potentially result in people struggling to earn enough money to meet their basic needs, hence debt accumulation. In such an instance, an IVA is a viable option. Check out Creditfix – IVA to learn how to acquire one. Otherwise, let us delve into the details of IVA.
How are these obstacles dealt with?
Well, for those unfortunate few who have let their debt catch up with them, several choices can be looked at. This will ultimately be subject to the particular situation the person is in, where it’s of vital importance in these times to seek out the specialized advice of a qualified debt advisor who can deal with these matters accordingly – in this case, an Insolvency Practitioner.
What about protection?
After an IVA has been established, the creditors (who are owed money) aren’t legally allowed to pursue a person for anything more than what they were originally owed. After which the debt can be paid within a five year period.
In essence, when loans or credit cards become overwhelming, and you start to struggle with your repayments, the IVA can provide a great deal of much-needed assistance.
What are the advantages of an IVA?
There several advantages to an IVA. However, the most significant are that it’s able to help you recover back to a point where your debt is completely cleared, and you can live a normal life again without having the monkey’ that is debt on your back. Once the IVA is agreed with a creditor, the IVA could substantially reduce the amount of money you have to reimburse within the required time frame. As mentioned previously, it’s most commonly a five-year period, after which you won’t owe anything.
Reasonable
An IVA is generated based on what is affordable for you. One of the biggest advantages for many people is that the humiliation of being labeled bankrupt is eliminated. The concomitant fees and penalties are also vastly reduced. These factors allow you to focus on the most important aspects of life, such as providing for yourself and family as well as putting a roof over your heads.
