Debt IVA

Introduction to Debt IVA

An IVA, or Individual Voluntary Agreement, is the answer most are seeking that have fallen into debt yet do not want to have to file for bankruptcy. An IVA is the answer to obtaining relief from one's debt. The following will explain how an IVA can be the solution for which one has been looking to erase his or her debts in a matter of about sixty months, once and for all.

Wipe Away Up to 75% of Debt with an IVA

Short for Individual Voluntary Agreement, an IVA is a government plan that allows individuals who may be struggling with paying off debts to privately arrange through an insolvency practitioner, the amount of money that they are able to afford to settle their debts out of the eyes of the public. At the end of the insolvency, the remainder of the individual's debt will be wiped clean and he or she then has the ability to start afresh.

For instance, an individual owing £29,000 in debt could pay about £15,000 of this debt in the allotted sixty months, and the remaining £14000 would be forgiven. Then the individual has the ability to start with a clean slate. These amounts and the period in which the individual has to pay back his or her debts will vary greatly from individual to individual, depending upon many variables within his or her own life. Many individuals may have more than double the amount of debt mentioned above, and still be able to have the majority of it wiped from their slate and be able to start again, fresh and new.

IVA is Private; Bankruptcy is Public

IVA really has to do with resolving to pay one's debts, whereas a bankruptcy is more of an avoidance of paying off debts. IVA is a private matter that is discussed strictly between the individual and his or her creditors. An affordable amount for monthly payments will be discussed and then agreed upon. When the individual has reached the last payment, his or her credit score will be improved, and there will be no permanent marks on his or her credit as there are with a bankruptcy.

Bask in the Ability to Once Again Obtain Credit

This is the only solution that allows an individual to pay off his or her debts in a way that he or she can afford, while allowing the individual to obtain credit once again once the original debts have been paid. Bankruptcy will put one's name in the public eye as a credit risk and this stigma can last for seven years or more on one's credit report. After the sixty months, or the time that has been agreed upon by individual and creditors, the individual may be allowed to obtain credit again, in the form of mortgages or other financial instruments.

Get Out of Debt with an IVA

With an Individual Voluntary agreement, an individual has the ability to become free from debt in five years or less, depending on the agreement. In a bankruptcy, all of one's assets are frozen and his or her credit score plummets. With an IVA, he or she will be debt-free and his or her credit score will not be affected. So when deciding one the best way for one to solve his or her current financial situation, an IVA is the most problem-free solution.