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 ArticlesFactory.com
ABOUT THE AUTHOR
Abdul Aziz is the director of Debt Free