IVA Advice – What is and Individual Voluntary Arrangement?

During these times of increasing uncertainty, more and more people are struggling to manage their debt repayments. It may be worthwhile considering an IVA. A good place for iva advice - An IVA (or Individual Voluntary Arrangement) is a legally binding contract between you and your creditors (i.e. the people you owe money to)..A fully approved and licensed insolvency practitioner monitors the arrangement. This person would be the main point of contact during the 5-year plan. He would also negotiate an agreement without the need for bankruptcy.

One of the best things about this type of set-up, is that it helps you to reduce your monthly payments to a more comfortable level and to have them cleared within a five year period. Although they may not be too happy about having to accept a smaller payment each month, it is far more than they would have received if you were declare yourself bankrupt. Furthermore, if you own your home or have a mortgage, you will still be able to apply for a re-mortgage and maybe even be able finish the IVA early! If you enter into an IVA, your house and your career will not be put at risk. Also, the contract is a private arrangement and your financial circumstances will not be made public like what happens in bankruptcy, which appears in the local press!

In the early stages of the negotiations, an affordable monthly repayment is set. This will have to be paid regularly for five years. However, if your financial circumstances do alter e.g. promotion, sickness etc, then this amount can be amended. This type of agreement is a very powerful tool and can be used to write off a large chuck of your personal debt. In fact, in some cases this can be as much as 75 percent!

There are a deluge of advertisements in the media – Radio, TV, Newspapers and the Internet all kindly telling you how to help ease your debt worries. For many, this can be somewhat daunting especially if you are just seeking basic advice to help get you started! If you do contact us , you can rest assured that you will be provided with independent and impartial advice specially tailored to your own personal circumstances.

However, an IVA debt solution is not necessarily the best for everyone and it is a big decision to make. You have to be sure that if you do enter into an IVA, it is definitely the best way forward. This is because there are some unscrupulous IVA companies who simply and wrongly recommend people to go enter an IVA whether or not it is the best right thing!

IVA Alternatives

One thing to bear in mind is that there are a various options you can consider to help with debt worries you may have whether you are a tenant, homeowner or otherwise.

1. Debt Management Plan.

This is a much more informal way of dealing with your debt problems. You can still agree a lower monthly debt re-payment with the creditors. It is usually possible to get interest frozen and/or reduced. People go for this option if they didn't qualify for an IVA or are reluctant to enter a legally binding contract.

2. Secured Loan / Re-Mortgage.

Entering into an IVA will be recorded on the applicant's credit report meaning this will affect the credit rating. Most people would prefer to avoid this and it is a popular choice for homeowners to go for a secured loan.

3. Bankruptcy.

In some extreme cases, bankruptcy may be the best option. This could be because you couldn't afford to make any reasonable amounts of repayments. This is a drastic step to take though, as your home and job may be risked. It is advisable to seek full advice before going down this route.

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