Individual Voluntary Arrangement IVA, an alternative to bankruptcy
Individual Voluntary Arrangement, IVA is an alternative to bankruptcy - that could offer you with a real solution to your debt problems.
If you have a substantial amount of unsecured debt an IVA can be your best solution.
IVAs are controlled by government legislation and can only be set up by licensed Insolvency Practitioners. An IVA acts as a legally binding agreement between you and your creditors, freezing interest fees on your debt and setting an affordable monthly payment amount over an agreed set time period (usually 5 years).
It is crucial to remember that you should only consider an IVA if you have enough money available to contribute towards paying off your debts every month or additional assets which can be taken into account.
Disadvantages of Bankruptcy
- Notices put in the press
- Potential loss of assets such as your home, business and car
- Continuing effect on your ability to apply for a credit or a mortgage
- Restriction to work within specific occupations or hold a position of office
- Your utility suppliers gas, electricity etc informed
- Your bank and building society accounts closed
IVA could help you with:
- The unpaid balance of your debts is written off as much as 75%
- One reasonably priced monthly payment, usually for five years
- Safeguards you from further action by your creditors
- Your creditors are legally bound by the terms of the agreement
- No uncertainty: you know how much you have to pay
- Alternative to bankruptcy
- No public notices: an IVA is between you and your creditors
Bankruptcy is not the only option when getting out of critical debt.