Individual Voluntary Agreements or in short IVA is nothing but a legal contract between you and your creditors,and enables you to reach a compromise with your creditors. This agreement is legally binding and helps you to avoid the consequences of bankruptcy. Apart from it IVA enables you to cut your debts to an affordable level and clear them over a fixed repayment period.
Be it secured or unsecured loans, an IVA is suitable for both the lender as well as the borrower. This is mainly due the fact that the fees associated with bankruptcy is generally very high and there are very less chances that the creditor will get some money through the borrower's assets. Therefore, it is advisable that both the borrower and the lender sign an IVA.
An Individual Voluntary Arrangement, or IVA, is a formal debt solution which is designed to assist a person who is struggling with unaffordable personal repayments.
The IVA does this by restructuring the expected repayments to a new affordable monthly payment, thus helping the debtor to keep up to date with the priority expenses, such as secured loans - like a mortgage or rent payment, and essential living cost - without the fear of legal recovery action being taken against them by their unsecured creditors.
Getting the appropriate debt help and getting it at the right time is essential when trying to address a serious debt problem.
However, establishing which debt solution is the most suitable for your personal situation is equally important, after all, trying to solve a debt problem by starting off in the wrong direction could cost you more than just time and money.
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