‘IVA’ is the shortened form for Individual Voluntary Arrangements. If you have a massive amount of debt that you have to repay and the people you owe are bullying you to repay or go to court, then there are two options available to you. You can either submit an application for insolvency, or apply for IVA. Declaring insolvency can be very stressful and the creditors will take over your assets and sell them. This would result in you losing your home, car, and any other assets that you have. You could virtually end up on the streets.

If you submit an application for an IVA, this is how it will go: If your IVA application is approved, the company through which you apply for an IVA will send an application to be filled out and returned to them. After this, they will summon you for a meeting and review the form with you. If they think that your debts can be repaid without you having to sell your assets through a debt repayment program they will apply for processing your IVA application.

Once the IVA application is approved, a meeting of all the creditors will be arranged. This will take place in about 2 to 3 weeks time after approval of your application. In the meeting, the creditors will have to decide to the repayment schedule. If more than three quarters vote for accepting the terms and conditions of the IVA, the others will be required to accept them.

Now after the acceptance, the business or individual who has negotiated the agreement will be the guarantor of the agreement. So, in place of making many differing payments to all the creditors, there is a single payment that will be paid every month.

The benefit of getting an IVA is that it protects your assets from being sold or taken away from you if you are a partner in a firm or a sole proprietor or a working person, you can carry on your work without any disturbance. Also, you get clear of all the creditors’ bullying and visits. Hopefully, when you finish your term you will have paid off your debts and retained your assets.

An IVA is a better answer than declaring insolvency or playing a balancing act between creditors. Another benefit, and perhaps the best, is that the increase in repayment amounts stops. This means that no extra interest is accumulated towards you. In various cases, a great IVA handling firm might be able to get the amount of debt brought down. You may also be able to apply for a fresh loan while repaying an IVA. Also, the biggest advantage is that you will not lose your house or any other assets.

If your income increases drastically, the IVA may renegotiate with the creditors and get the repayment schedule reduced, and in case it drops it may get extended. So, no matter which way your income fluctuates your debts will remain the same.

There are great advantages to getting an IVA, especially if one has accrued a lot of debt and has creditors disturbing them. The first advantage being that you don’t have to close your business, secondly you don’t lose anything, and thirdly there is just one monthly payment that is to be made. Furthermore, in a few years you will be free of all your debts.

Related Posts:

• IVA versus Bankruptcy
• Are My Finances Bad Enough For An IVA?
• When Do Finances Get Bad Enough For An IVA?
• An IVA: A Solution For Extremely Bad Finances
• What Help Is Available To You If You Are In Debt?