Friday, June 22, 2012

Benefits of an Individual Voluntary Arrangement

Debt repayment options are many and all of them are best suited for people with different debt problems. However, an individual voluntary arrangement or IVA is one of the most used debt repayment options these days. This is mainly because of the fact that an IVA gives the much needed benefits to the debtor, which allows them to easily repay their debts.

An individual voluntary arrangement has many benefits for the debtor. Following are some of the key benefits of using an individual voluntary arrangement to repay your debts.

  • An individual voluntary arrangement helps you to pay as much as you can every month. You will determine the lowest possible amount for monthly payments with the help of your Insolvency Practitioner (IP). This makes the repayment easier.
  • Once you have determined the amount you are going to pay every month, your IP will contact your creditors and get them to agree on your IVA. If your creditors agree, then you will start making the payments.
  • One of the biggest advantages of an individual voluntary arrangement is that your creditors cannot take any action against you when they have agreed on an IVA with you. Therefore, as long as you keep making your monthly payments, you do not have to worry about listening anything from your creditors.
  • IVA helps you pay less because when IVA is set up, interest rate and other charges are usually stopped by the creditors.

These are some of the key benefits of using an individual voluntary arrangement, so if you are looking for a way out of debts, then you should check to see if you can use this debt repayment option.

IVA offers a way Out of Debts

Getting out of debt is not easy for most people because debts have a way of coming back to you, especially if you are unable to control your expenses. If you are buried under a lot of debts, then it is best that you find a way out of debts and take control of your finances again. If you are looking for a way out of debts, then it is best that you choose an individual voluntary arrangement (IVA) to pay off your debts.

An individual voluntary arrangement is one of the most used methods of debt repayment because it allows you to pay off as much of your debt that is agreeable to your creditors, over a specified period of time. due to this agreement between you and you creditors, your creditors will not take any action against you, as long as you are making payments on time. in order to set up an individual voluntary arrangement you will need to hire an insolvency practitioner (IP), who will discuss the terms of IVA with you and then contact all of your creditors and get them to agree on your terms.

When you have successfully paid the amount that is agreeable to your creditors, the rest of your debts will be written off. Usually, when an individual voluntary arrangement is set up, your interest rate is frozen, and sometimes, penalties are also written off as well. That is why; an individual voluntary arrangement is one of the best methods to repay your debts and start a better life again.

Azam who is an expert in the field of finance and technology writes this post. He has written several posts on debt management plans, IVA, bankruptcy advice, etc.

1 comment:

Daniel Crow said...

Why choose an Individual Voluntary Arrangement? If you get IVA Advice you will soon find that this type of arrangement is popular because it is probably the only one that allows the debtor control. You can also protect your assets, if you are a homeowner, which is important security to a lot of people.