Advantages of Individual Voluntary Arrangements
- Author Richard Spencer-Hayes
- Published May 22, 2010
- Word count 323
Individual Voluntary Arrangements also known as IVAs are just one type of debt solution available to people in the UK. If you are suffering from serious debt problems then you may be eligible to apply for an IVA plan. As a solution to debt IVAs offer a number of advantages and benefits.
The main benefit of individual voluntary arrangements are that they are a legally binding agreement that will solve your debt problems in a fixed period of time. At the end of the IVA all remaining unpaid debt is written off by your creditors leaving you free from debt. Typically IVAs last for a period of five years (60 months) however the actual length of time can vary from case to case.
The IVA works by consolidating all your debts so that you make a single regular monthly payment. The amount you actually pay will be based on what you can afford on your current income and expenditures and so it is likely that you debt repayments will be significantly reduced immediately putting you in a much more financially comfortable position.
An individual voluntary arrangement is a completely private agreement made between yourself and your creditors. Therefore unlike as is the case with bankruptcy you will not be required to go to court and the agreement will not be listed in your local newspaper. This greater degree of confidentiality is often viewed as a major plus for people considering whether an IVA or bankruptcy is the debt solution for them.
A further benefit is that in the majority of cases an IVA plan can be set up in just a few weeks giving you a quick cure to the stresses of financial problems. Setting up the agreement will put an immediate stop to any court action taken by your creditors. Additionally once you enter into the IVA all interest and charges relating to your debt are stopped meaning your debts do not increase.
IVA Advice online provides indepth information about individual voluntary arrangements and UK debt solutions. Read about IVA advantages and use our free IVA calculator to find out if an individual voluntary arrangement is right for you.
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