Friday, June 4, 2010

IVA Debt Solutions - An Initiative of UK government to make you debt free



Under Individual Voluntary Arrangement (IVA) you do not have to deal with the multiple creditors. IVA is a kind of legal agreement between you and your creditors which provide you the chance to reduce your repayments as well as Interest rates. IVA is the recent invention of the UK government to avoid bankruptcy. The Intention behind it was to help those people who are facing serious debt problems. To be eligible for IVA you should owe more than $15000 to your creditors. In this article I will try to cover all the aspects of IVA.

How to Apply For IVA ?

A licensed Insolvency practitioner also known as "IP" or debt advisor will communicate to your creditors on your behalf. Before that they will collect all your financial information from you like how much you earn and what is your total expenditure. Depending on your information they will negotiate with your creditors and fix a amount to be paid by you every month through your debt advisors for the period of five years. The process is relatively simple.

What are the Criteria to be eligible for an IVA ?

To be eligible for IVA you should at least owe $15,000 to more than two creditors and you should be able to afford at $200 to pay off your debt every month.


Pros of the IVA debt solutions:

  1. Walk away debt free in 60 months only.
  2. Freedom from the harassment calls and letters from your creditors.
  3. Pay $200 only every month.
  4. Protection from bankruptcy.
  5. Provide legal protection from the creditors.
Cons of the IVA debt solutions:
  1. You cannot borrow further money until your 60 month time period is over.
  2. Affect your credit rating
  3. Monthly repayment amount may increase if your pay rise.

1 comment:

  1. Thanks a lot for the post. It has helped me get some nice ideas. I hope I will see some really good result soon.
    Debt Collection Singapore

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