IVA: How to Get Out of Debt with This Solution

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Guy looking at his empty walletGetting yourself out of debt is a huge undertaking. It requires discipline and planning. And most of the time, you cannot do it alone. You would need the assistance of insolvency practitioners and advisors from organisations like debt-helpline.com in handling your debt repayment plans.

What is an IVA?

The assistance service you will get from these professionals does not necessarily mean financial help. Their service often comes in the form of their ability to negotiate the amount you need to repay so that you will not have to resort to filing for bankruptcy.

One of the best solutions insolvency practitioners offer is the Individual Voluntary Arrangement or IVA, which is an agreement with creditors to pay off all or a portion of your debts. The IVA requires an insolvency practitioner to help in determining how much you can pay monthly and how long this deal will last. For an IVA to be put in place, the agreement of the creditors holding 75% of your debts is necessary.

Your Responsibilities

The IVA is a negotiated repayment scheme that requires fixed monthly dues. All payments are forwarded to the insolvency practitioner, and it is his or her responsibility to divide the monthly payment to the creditors. It is also part of the insolvency practitioner’s job to add the IVA to the Individual Insolvency Register. This will be removed after three months.

The IVA also has provisions for non-payment. When the payments stop, the insolvency practitioner can declare an individual as bankrupt.

The IVA is a mechanism that forces an individual to pay off his or her debts; otherwise, he or she will be declared as bankrupt. This arrangement helps creditors collect on the loans with a repayment scheme.

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