IVA - The Alternative to Bankruptcy

If you are considering bankruptcy, there may be another way for you. There is a viable alternative that may work to your benefit in the long term. It allows you to save your credit and fulfil your responsibilities without draining your finances.
Individual Voluntary Arrangements are the positive alternative to bankruptcy that many are choosing to save their financial futures. And IVA is a legally binding agreement, sanctioned by the government that allows you to pay your debt over time.

How is it different from other debt management programmes? IVA's are very different. They are negotiated and handled from start to finish by an Insolvency Practioner (IP). The IP goes to your creditors and negotiates a payoff at usually 45-50% of the original amount, freezes the interest rate and stops late charges. He then puts a time line on the payoff - usually 5 years depending on the size of the total debt. Then, you make one payment monthly to your IP; he in turn disperses the funds to your creditors.
The IVA offers full protection under the law from your creditors. They cannot come back on you in the future. And, when 75% of the creditors agree to the arrangement, the rest must agree as well. And IVA can be an option even if consolidation loans have been refused in the past, leaving many to believe bankruptcy is the only option.

In bankruptcy, your home may well by in jeopardy. This is not the case with IVA's. Your home and car are normally not at risk. Your credit is also at less risk with an IVA versus a bankruptcy, as future lenders will appreciate that you took responsibility for your debt rather than have them absolved through bankruptcy.
Creditors do prefer IVA's and normally accept the arrangements without hesitation. They are aware that through this arrangement they will receive a percentage of the debt owed them, whereas should you choose bankruptcy, chances are, they will receive nothing. Therefore, your IP typically meets with little resistance to the agreement presented to the creditors.

IVA's are but one option to financial difficulties. Consult a professional and get the information you need to make the decision that is right for you.

The IVA offers full protection under the law from your creditors. They cannot come back on you in the future. And, when 75% of the creditors agree to the arrangement, the rest must agree as well. And IVA can be an option even if consolidation loans have been refused in the past, leaving many to believe bankruptcy is the only option.