Debt Consolidation is not the Only Alternative!
What is an IVA ?
"What is an IVA?" is a question a debt consultant would suggest all debtors to find answers to. Especially for those tired of dealing with income expenses mismatch, IVA is relief. An important substitute to bankruptcy, the features of IVA establish substantial grounds to ensure that what is an IVA question is comprehensively answered.
Governing UK Law - the Insolvency Act 1986
IVA i.e. Individual Voluntary Arrangement is a formal understanding established
between the debtor and creditors to deal with the non payment issues. The
process entails preparing a proposal by the debtor and submitting the same to
creditors for approval. The key reason for considering an IVA and thus finding
answers to what is an IVA relates to the terms as defined in this proposal. The
IVA agreement is drafted such that claims of the unsecured creditors are
compromised (a percentage of the total value), while secured creditors, receive
the amount due, maybe over a longer time frame. As evident, with IVA as the debt
management tool, debtor enjoys better repayment terms, including reduced cost
and spread out time frame and creditors are guaranteed payments.
A flexible debt elimination tool, the Individual Voluntary Arrangement i.e. an
IVA is legally enforceable and thus in all situations followed by both the
relevant parties. The explicit benefits of IVA help debtors achieve peace of
mind and thus offer energy to start again.
Why is an IVA’ important?
This is a crucial question because it provides details on the various advantages of Individual Voluntary Arrangement (IVA) including:
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Between the walls of privacy – IVA is a private affair, with no issues like public harassment to be taken care of. The details of the proceedings are not declared in any paper, neither are compulsorily made public; it is voluntary arrangement between creditors and debtor and is treated likewise.
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Obtaining credit after getting into Individual Voluntary Arrangement is possible. Debtors can seek credit from new sources, despite being obliged to pay regularly towards the IVA monthly payment. The system is quite flexible and provides a definite opportunity to manage the earlier disturbed financial life.
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Business and job terms are not affected with IVA – An Individual Voluntary Arrangement allows the debtor to continue previous business understandings, the way he would like to. An IVA does not mandate forgoing important responsibilities and neither does it requires resigning from eminent positions. Moreover, the IVA proceedings, in no way impact the debtor’s career moves or employment planning.
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Comparatively an economical option - Individual Voluntary Arrangement as a debt management tool, is comparatively less expensive than various other comparable, debt administration tools. IVA does not entail high end legal fees; neither does it calls for any voluminous deposits with the authorities. It is a simple procedure, with even simpler terms and conditions to understand.
Perhaps it is a combination of these reasons which has prompted many in UK
suffering from debt ailments, to undertake search of what is an IVA?
Articles on IVAs
What is an IVA?
The IVA Process How to Start an IVA
Advantages &
Disadvantages
IVA Payments