An IVA is an Individual Voluntary Arrangement, which is a formal agreement you make with your creditors. They are arranged through specialist companies and are an agreement you make to pay a certain amount of money to your creditors for a set period of time. Once this amount of time is up any debt you still have is written off completely.
Here are some interesting facts about IVAs: For one, you only need to get 75% of your creditors to agree to your IVA, and then the rest have to follow suit. That 75% does not even represent the number of creditors, only the actual debt value. If most of your debt needs to be paid to a single company, you may only have to make an IVA with them. Since it is a formal agreement it is also legally binding.
When you agree to an IVA the interest on your debt is frozen from that point. It is a far better option than declaring bankruptcy because you manage to keep your assets, you can keep a bank account and if you are a business you can continue to operate. There will be a small fee to set up an IVA although this fee will be less than filing for bankruptcy and you will pay the specialist who arranged the IVA for you within the monthly amounts you pay out. The amount you have to pay to the specialist is nothing compared to how much debt you will get written off by the end and the fact you were saved from bankruptcy.
Not all debt is best controlled by IVAs, when you contact a debt management company beware that some may encourage you to get one simply so they can receive the fees and not because it was actually your best option. With this in mind make sure you go to a reputable company and they are giving you advice for your situation that is actually relevant and not just a way to get money from you. The right company will advise against an IVA unless it truly is your best option.
The best way to find a trustworthy company 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.
Learn More : IVA Or Insolvency
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