IVA Plan

Introduction to IVA Plan

An IVA plan is the perfect solution for people who are in serious debt. The truth is that the IVA plan is not the only solution for people with serious debts, but it is often the only one that will give them a chance for a normal life without any debts. Namely, there are many different types of formal and informal debt management arrangements and all of these debt management plans have been created to help people get out of debt. However, in some situations, the creditors are not willing to set up any kind of a debt management arrangement. When this happens, there are two things that can help people.

One option is filing for bankruptcy, and the other is an IVA plan. It is easy to see the difference between the two just by reading them out loud. Bankruptcy has been the only way of getting out of serious debt for quite some time, but for many years now IVA plans have taken over. The reason for this is the fact that IVA plans let people keep their assets and their dignity by not filing for bankruptcy. Rather than this, people are given the chance to set up an IVA plan and get out of debt more easily and more quickly than ever before.

IVA Plan – What Types Are There?

All of the IVA plans that are available to people in the UK have the same purpose, but there are a few different types of IVA plans available to people. Here is a list of some different IVA plans:

• Standard IVA Plan – this IVA plan involves freeing the debtor from all of his debts within a period of five years, during which the debtor makes monthly payments and after which the debt is written off completely.
• Equity Release IVA Plan – this type of IVA plan involves releasing some equity from the debtor’s property, in order to complete the payments in the set period of the duration of the IVA plan.
• Full and Final IVA Plan – this IVA plan consists of the debtor paying a lump sum of money without having to wait for the period of five years to pass, thus having no monthly payments/
• Trader IVA Plan – this IVA plan is perfect for self employed traders who have a lot of debt but want to keep working normally.
• Scottish IVA Plan – for residents of Scotland, an IVA plan can be a great thing owing to the fact that it can be reduced to even three years, as opposed to the period of five years in England, for instance.

When deciding on an IVA plan, it is very important to get to know the whole process very well and to consider all the advantages and disadvantages before actually applying for it. Also, it is important to find a good and experienced insolvency practitioner who will be able to point out every single detail of the IVA plan in question.