IVA & Debt Management Advice
Posted on July 27, 2010
Filed Under Debt Relief, Refinancing Solutions | Leave a Comment
Individual Voluntary Arrangements, or IVAs, are a debt settlement solution that can be arranged for you by a specialist company. It is a formal legal agreement between an individual and creditors. It creates terms for monthly payments over a set period of time and after that period has been completed the remaining debts will be written off. With IVAs you simply need to get the creditors of 75% of your debt to agree to it, and the remaining 25% will be bound to the legal agreement whether they wish to or not. This is perfect if you owe 75% of your debt to a single creditor, and the remaining to others. You only need to get that single creditor to agree to the IVA, then no matter what the other creditors wish they are bound to the agreement anyway. An IVA gives you more control over the situation than a bankruptcy, and you pose less risk of losing your home or other assets. Generally in an IVA your interest is frozen from the time it starts so the debt can no longer increase. You can even continue business trading and are able to have a bank account under an IVA. The specialist company that sets up your IVA will factor their fees into the payments you make each month under the agreement, though IVAs cost money to maintain it will cost you less than filing for bankruptcy. Keep in mind that not every debt problem can be solved by an IVA. Although many debt companies would be glad to provide you information on IVAs you should be wary of a company that pushes you to forming an agreement simply so they can collect the set-up fees. Find a company you can trust that will help you find the best solution, an IVA is not the best option for everyone. The best way to find a trustworthy company to help you with an IVA is to research, look for the companies that come highly recommended and have been successful in helping many people out of debt. Try contacting a handful of these companies and see who comes up with the best solution for you. You do not have to commit to the first company you find, you can always say no and keep looking.
Find Out More : Insolvency
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