Iva Debt Solution: Fix Your Debt Problems at Minimum Cost

by : Achala Afreen

IVA debt solution is a way to fix your debt problems by applying debt management. This help is generally provided by an authorized and professional organization. The organization assigns an Insolvency practitioner who looks after your debts and finds a way to solve al your financial problems. He works out a settlement between creditors and debtor as such that a particular affordable amount is paid by debtor to his creditors. The duration of this plan is generally 5 years.

Some other facts:
Sometimes IVA debt solution is considered as bankruptcy by common people, but this is completely different from bankruptcy. It is completely kept secrete and thus no one knows about the poor financial status of the debtor. Also it saves a lot of your money as it is much cheaper than any other debt solution programs. You can only apply for IVA debt solution when your are unable to make monthly installments on your debts at the current level of minimum payment and interest rate. Opting for an IVA doesn't hammer your credit score but all of them will b inactive once you enter the agreement. After that you can't apply for other loans or credit card, but your credit score will keep on increasing till you are regular in repayment.

IVA debt solution has got a lot of advantages such as
a) The interest rate is frozen.
b) Only an affordable amount is paid each month.
c) The bankruptcy condition is avoided.
d) A creditor neither takes any legal action against debtor nor can he request to change the agreed monthly payment.
e) IVA is kept completely private and no one knows about your financial status.
f) IN some ways it improves your credit record.
g) Your property such as home is not risked when you choose IVA.