Individual Voluntary Arrangements are furnished between two parties. No, these are no truce between two hostile camps. Instead, here, one camp is set out to help another. Individual Voluntary arrangements speak of a legal contract between a debtor and his creditors. They allow the debtor to pay back a percentage of his debt to a fund set up for 5 years, through a reduced monthly amount which is preset and affordable for the individual.
Individual voluntary arrangements are gartered between the debtor and his creditors through a legal process and this is set up by an insolvency practitioner, a licensed practitioner. A licensed professional settles the bid of Individual voluntary arrangements through a meeting arranged between the debtor and creditors. The debtor can grab the Individual Voluntary Arrangement after only he can secure around 75% of the creditors support for his proposal of the IVA. Once, the IVA is set up, you can go for an Interim order. You have to do it to stall all your creditors from entering into any legal action against you. Individual voluntary arrangement gets set up for a term of 5 years. In the middle or any time, if you are troubled any more by any of your creditors via anything, an e-mail, letter, fax or anything else, is totally prohibited.
Individual voluntary arrangements are done to get you off the hook of not only debts, but also from worse situations like a bankruptcy. Unlike bankruptcy where everything is open to grab you into sheer social disgrace, here, in IVA, individual voluntary arrangements all the things settled between you and your creditors are quietly kept in secrecy. Individual voluntary arrangements are completely individualistic in nature.
Your term in Individual voluntary arrangements, in short, IVA, is of 5 years. For this period, you are to pay the fixed amount of money to the fund decided by your creditors. In the end, you will get totally off with your debts and whatever may remain, are sure to be written off. So, you are sure to be totally off with your unpaid debts.
Individual voluntary arrangements have got, yet more benefits. When they are on, interests charged on your loans get frozen. Unlike bankruptcy, here you have can keep your bank account and hold any position in the job or can do the business as well. IVA or Individual voluntary arrangements are only to remind you that you can still be kick your problems.
