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What is an IVA? And how to get one.

IVA means Individual Voluntary Agreement and gives people piece of mind when it comes to their finances. Having an IVA gives you the option of repaying your debt to a level that meets with approval from your creditors while at the same time the IVA gives you the freedom

IVA means Individual Voluntary Agreement and gives  people piece of mind when it comes to their finances. Having an IVA gives you the option of repaying your debt to a level that meets with approval  from your creditors while at the same time the IVA gives you the freedom  that bankruptcy or having your assets seized would hinder or even stop you from  doing any future business or for applying for credit or a loan.

   The IVA is brokered  with an independent supervisor who will aim to give you the flexibility to  repay within your budget to a standard that meets with approval from your  creditors. Remember that your creditors would like to see you repay your debt  to them and if you declared bankruptcy there is a good chance that they would  never get a satisfactory level of repayment and as such their business  practices would suffer. An IVA would aid all parties concerned as it  provides your creditors with the knowledge that you intend to repay and stick  to a repayment program whilst at the same time giving you piece of mind  regarding the amount that you will have to pay monthly and the amount you will  have to pay.

  Having an IVA is less embarrassing and financially  debilitating as bankruptcy. Bankruptcy would severely affect your credit score  and would prevent you from applying for great deals of credit and would mean  that any creditor that chose to do business with you would charge an  astronomically high level of interest.Any IVA is regarded as being a  private and contractual agreement between you and your creditors is kept  private and secure from anybody who is not involved with your debt. The only  one allowed into view the situation is the supervisor and they work to ensure  that the IVA is well balanced and firmly established. 

   Having an IVA will  keep you financially free but must be adhered to in order to avoid more serious  action being taken out against you.

  As with any financial decision that affects your life it is  recommended to seek out competent professional advice.

  The threat of debt  can push people to the edge and the word Bankruptcy can have nightmares  connected to it. However this doesn't have to be the case and more and more  people are discovering that they don't have to live in fear. A simple step  known as an IVA advice can set you back on the path to financial stability.

   An IVA or Individual  Voluntary Agreement is a lifeline that is worked out between debtor and  creditors in order to aid all parties by ensuring that the debts are paid to a  satisfactory level of the creditors. The great advantage of an IVA is  that you will an no point be publicly blacklisted for your debts and will not  be made to explain your arrears to any further financial establishments such as  banks. The private agreement of an IVA means you have great piece of  mind whilst paying off your debts. The institution if an IVA is done  with supervisory support and are private documents.

   The ombudsman in the  relationship will be your point of contact for dealing with your creditors  which will mean that all correspondence and telecommunications will be given to  you via them, ending the worry of the demands landing on your mat.

   An IVA whilst being  private will allow you to continue your business practices or to start up a new  business without fear of bad credit scores affecting your chances.

  Bankruptcy is also heavily disliked by creditors as it means that  they are less likely to see a good deal of the debt paid off, whereas an IVA gives them the option of setting a manageable level of repayment. Bankruptcy  will as the name applies have a severe affect on your assets and could even  seize all your worldly possessions. An IVA will give you the chance to  keep your assets and allows your freedom in how you will repay your debts and  what you would choose to sell to repay your debt.

An IVA is a last resort and should be considered before  bankruptcy. With all financial decisions we advise taking professional advice.

Source: Free Articles from


Abdul Aziz is the director of Debt Free

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