Rising costs of living is just simply creating an ardent impact on people's spending levels altogether. Such high debt levels are likely to influence the future financial position of many young people and could lead to long-term debt problems. Considering the right mechanism of the gravity of the problem, the lending authority has come with the bright solution of IVA and further through awareness taught the debt-affected mass about, what is IVA?
Answering the question regarding what is IVA is very simple and time saving debt elimination program. First of all, have a glance on the expansion of the abbreviation, it means Individual Voluntary Arrangement. An IVA program is a formal financial agreement between a debtor and his creditors where he comes to a negotiable arrangement of his repayment of debts.
Having taken a decision of availing the facility of IVA, the debtors may have asked some questions regarding his current financial situation. Based on the given information, a repayment agreement is charted out with agreement of the debtor.
Further, an application to the court for an interim order is made so as to take concession with the protection of legal binding. Once this is in place, no creditor is able to take any sort of legal action against the debtor. A creditor meeting is organised to make a consensus regarding the arrangement of an IVA.
Interestingly, the whole of the IVA debt elimination program is executed well under the consideration of an Insolvency Practitioner. An Insolvency Practitioner is usually also either a chartered accountant or a solicitor who must separately quality as an Insolvency Practitioner after firstly qualifying in accountancy or law. The vast majority of insolvency practitioner does not take consumer IVA appointments, preferring to concentrate instead upon commercial restructure, administrations and company liquidations. However, the number of insolvency practitioners involved in consumer IVA work is now growing in line with the rapid increase in demand for IVA debt restructures.
An IVA will overcome the problems outlined above. It is an agreement with your creditors to make a single reduced payment each month which lasts for a sensible period of time (normally 5 years). Once agreed, creditors are not allowed to add further interest or charges to your accounts by law. The agreement is fixed meaning that creditors can not randomly demand changes to it. The IVA therefore offers a real solution for the debtors.
For all that, debtors have to do some personal efforts. Nothing but their right application of minds, there are many lenders available online and offline for IVA program to give the answer of the concerning question of what is IVA. Select some of them and make a thorough study of their terms and conditions. And make your IVA plan according to your suitability and feasibility subsequently
