What is IVA and what are its advantages?

Firstly, IVA or Individual Voluntary Arrangement is a legally binding solution for debt for those who are finding it hard to pay off their debts due to their current financial situation. This type of arrangement is legally applicable only for those who are residents of England, North Ireland or Wales. This type of arrangement usually goes on for about 5 to 6 years, during which you have to make just one payment every month – which you can obviously afford. Nothing which you cannot afford is charged from you and you have to make this payment one time only per month, for all your creditors.

During this period, your creditors will not be able to take any legal action against you; neither will they be able to contact you. The transaction will take place through a mediator, who will act as your financial advisor. This person will keep track of your payments and will also help you pen down how much you will be able to pay off every month. He or she will track all your assets and your earnings. Based on this decision itself, your final payment amount will be agreed upon. There is no need to hide your earnings or belongings from the mediator because they will never force you to turn your assets or anything of that sort. The decision will have to be yours completely.

If you want to consult a debt adviser then you can look up sites like www.debtadvisoryscotland.net and yourmoneysite.com online. They schedule an appointment with you and get started. If you think that your debt situation is going to get only worse 5 years down the line, then this is the time you should be thinking about consulting a debt adviser. Usually people have been able to save a lot by getting the help of insolvency practitioners, who help them through this IVA debt solution.

Now if you are about to take an IVA, you might be wondering that your credit rating might get affected. Most people worry about a credit rating when they do not even take a second loan during their lifetime. So instead of thinking of the future, concentrate on how you could benefit at present with the help of IVA. Some of the advantages of getting an IVA are:

  • Affordable installments: You make payments each month, which is within your capacity. No more need to get further in debt to repay your debt. IVA is the solution to your essential payments.
  • Your home stays yours: Contrary to what people may think, an IVA allows you to retain your house. You may however have to remortgage your home six months before the end of the IVA term. You will not be forced to sell your home.
  • Certain assets can remain yours: You can keep that car of yours. IVA allows you to keep certain assets like your vehicle with yourself. You can go in for extra payments by keeping your assets. The creditors need to agree to this.
  • Freedom from nagging creditors: An IVA means that your creditors can no longer contact you nor will they be able to take any legal action against you. IVA forbids them by law to do all that against you.
  • Not all creditors have to agree: The best part is that only a percentage of your creditors have to accept to this arrangement. Once your arrangement has been printed, the creditors will be notified and they do not have to all agree. Your insolvency practitioner ensures that the arrangement gets approved.
  • Flexible payment regime: 5 or 6 years is a long time; and during this period the economy can fluctuate and the prices of things can go up, or your earnings might see ups and downs. So during this time, the IVA payment shouldn’t remain the same. This is the best part – IVA is really flexible with the payment schemes and it can always adjust to the present day situation.
  • You are supported throughout the process: You always have an insolvency practitioner or a financial adviser with experience, who will advice you on the best step forward. You shouldn’t hesitate to discuss things with them.

If you need more questions answered, check out IVA Pros who act as expert financial advisers and help you in getting an IVA for you quickly.