If you have reached a stage where you are looking for various ways that could help you to lead a debt free life, then you must have already heard of an option by name – Individual Voluntary Arrangement plan. However, there is every possibility for you to land amidst a myriad of questions that might lead to a perplexed situation whether this plan is the right choice for you or not. Well, fret now!
One of the best ways is to reach out to a financial expert or a company that excels in offering financial services and advice. They have the essential tools, expertise and knowledge to help you sail through this journey of debts in a guilt free manner. However, before you reach out to them, it is always good to gain some knowledge for yourself. This is not at all a difficult job. Internet has a plethora of options that will help you to gain all the required knowledge for you to understand the varied aspects of an Individual Voluntary Arrangement plan.
Features and Facts of the Individual Voluntary Arrangement plan
Individual Voluntary Arrangement offers a great degree of respite when you are into a heavy debt. You will be allowed to pay off the money that you owe over a certain period of time, usually 60 months, on completion of which you will become completely debt-free. It is one of the best ways to arrive at a settlement that will help you come out of severe debt problems. The whole process of setting up the formal proposal and monitoring the debt is carried out by an Insolvency Practitioner (IP). If the proposal is accepted by majority of the creditors, then IVA comes into being wherein it binds you and your creditors.
IVA – Is that for You
The Individual Voluntary Arrangement will work best for you under a situation where you are completely helpless in repaying the loans to your creditors. Through such an arrangement you will be able to pay off the money within a certain time frame after which you will be declared debt free. You do not need to pay any further interest and other charges thus lessening the burden to some extent. Usually the total sum that you have to pay back to the creditors is much less as compared to the actual amount that you owe.
If you are in a situation where you have a debt of at least £15,000 that you have to pay to three or more creditors, then IVA is probably one of the best solutions for you. Filing a bankruptcy should be the last resort to debt solution as the aftermath can be really bad. It will negatively affect your credit rating too. It is always recommended that you speak to a professional debt advisor in order to be sure whether an Individual Voluntary Arrangement will be suitable for your situation. That way you will know the right direction to get rid of sleepless nights created by the burden of debt on your head.