IVA Debt Advice

Introduction to IVA Debt Advice

IVAs are individual voluntary arrangements that are made between a person who owes debt and their debtors in regards to payment of that debt. These are binding agreements that are made and set to benefit both the creditors and the debtor. The creditors agree to reduce the amount of debt that you owe to a more obtainable amount. This arrangement consolidates all of your loans and other debts into one low monthly payment to be made for about five years. This makes it an affordable option for many people. When planning an IVA it is best to start by getting some IVA debt advice from a professional.

Role of an Advisor with IVA Debt Advice

An IVA is only one of several options that are available to people with substantial amounts of debt that they owe. It is a good idea to seek out some IVA debt advice before making any decisions as it is better to know your options before it is too late to change course. A licensed insolvency practitioner can meet with you to advise you on all of your options. He will take into consideration how much debt you owe, how much money and assets you own and what your current income and expenses are. After calculating you specific set of circumstances he will determine what your best options will be.

If an IVA is suggested, your licensed insolvency practitioner will be able to give you the best IVA debt advice. He will advise you on how to deal with your creditors and how to respond to those nasty phone calls you may be getting. He will be the one sending out your proposal to your creditors and he will give you IVA debt advice at the creditors meeting allowing you to get the best payment reduction possible.

IVA versus Bankruptcy

IVA and bankruptcy are often the two most common ways to deal with high debt problems. Both will significantly reduce your debt level and leave you almost debt free but there are some big differences. First of all to even qualify for an IVA agreement, you must have enough income coming in that you will be able to make the agreed upon monthly payments. This is important because if you fail to make these payments, the IVA will end up being voided and you will need to go to bankruptcy court anyway. If there is not enough income coming into your household than you should not consider an IVA. Your licensed insolvency practitioner will be able to evaluate your current income and expenses to give you IVA debt advice on this subject.

Another thing to consider is if you own property, you will want to try to enter into an IVA agreement. IVA agreements can be done without including your house or other property and this will enable you to keep your home. Bankruptcy court mandates that you include your property in the proceedings and it is possible that you may lose your home or property. You will also be able to seek other loans and credits if you have an IVA done whereas a bankruptcy make you wait for about one year before you are able to try to obtain credit.