A lot of people are in debt and don’t know what to do. They might not be able to pay off their loans, mortgages, and other debts. This is when they look for alternatives to bankruptcy. An IVA is one alternative that can help them get out of debt without going bankrupt. It is a legal process that involves making monthly payments over a set period of time with the help of a trustee who oversees the process. An IVA can be an effective alternative to bankruptcy for those who want a fresh start but don’t have the means to go bankrupt.
Insolvency includes both bankruptcy and IVAs. This means that your name will be put on the Insolvency Register regardless of the option you choose. This is a legal database that contains active and newly concluded agreements. Despite the fact that it is searchable by anybody, it is more likely to be used by creditors than by members of the general public.
Is an IVA appropriate for you?
An individual voluntary arrangement is a written and legally enforceable agreement between you and your creditors to repay your debts over a set period of time (IVA). An IVA is adaptable to your demands, but it is costly and comes with risks.
Benefits of an IVA
An IVA has a number of benefits. We’ve described the specifics of these benefits below so you can determine if an IVA can help you:
You pay only as much as you can afford: Before you pay your IVA, your day-to-day living expenses will be considered.
It secures your assets: Normally, assets such as your home or automobile are protected during an IVA, allowing you to keep them if they are of fair worth.
Creditors are unable to pursue you for payment: Once your creditors have agreed to your IVA proposal, they are legally bound by it and cannot contact you directly for payment.
Note: Struggling to find a Free IVA Advice? Don’t Panic! Acme Credit Consultancy Ltd. will provide you with free debt management advice to help you to get out of debt.
