IVA stands for Individual voluntary Arrangement. It is legal binding agreement between you and your creditor to pay off your outstanding dues. A number of credit counselling agencies are out there in the money market. These institutions offer to the people in debt distress. Upon the processing, you are allowed to make reduced payments toward the total amount of debt. As a result, percentage of a total is paid off. You are given five years or so to settle your debts.
The first thing that all IVA debt advisors suggest is that you must read all about IVA. Get as much information about IVA as you can before you make any firm decision. That is all good. But the problem is that there is so much information available on IVA and other debt solutions that you sometimes get confused.
At this place, an Insolvency Practitioner (IP) plays a leading role. The Practitioner works on your behalf. He calculates your outstanding dues and the different rates of interest. Later, he arranges for a meeting of creditors. Over the meeting, your proposal is presented to your creditors. During the session, once your creditors receive your IVA proposal, a receipt of the proposal will be logged. And later, your proposal is accepted unanimously. If there is any change in your proposal, you may or may not adhere to the request for changes.
Following are advantages of IVA debt advice:
* You do not need to sell your house
* Avoids any legal proceeding against
* You get out of debt in an arranged manner
* Your creditors stop making unnecessary calls for payments
* Creditors can be forced to accept the IVA offer
Upon the IVA debt advice, you successfully complete your IVA program. Your records will be updated and at this time, you will no longer be in debt.
