Definition of Iva: Debts are No More a Hassles

by : Leon Smith

As debts are increasing, so are the travails of those who are trapped under debts. If not taken care on an immediate basis, it may deteriorate your financial standing and push you in to the brink of bankruptcy. The problem is very serious and like you most of the individuals are facing the same set of problems. In these circumstances, the only hope of managing the debts lies in seeking the assistances of or Individual Voluntary Agreement.

Individual voluntary agreement or commonly referred to as IVA is a legitimate solution with the help of which you can handle the debts and escape bankruptcy. Most of the people are opting for this program to settle their problem of debts. It is basically a legally binding document with the various creditors which lasts for a period of 5 years. During the intervening period, you are required to make monthly payments based on your prevailing circumstances towards the debts and the rest is written off.

In this regard, an insolvency practitioner will assist you to prepare a proposal on the basis of your prevailing financial condition. Before the proposal gets approved, the creditors to who you owe more than 75% of the amount must agree to the terms and conditions. When the proposal gets approved, you are not at all required to deal with the creditors. All you have to do is to make a fixed monthly payment over a period of 5 years. By sticking to the terms of IVA, there is outright chance that your debts may get written off.

This program is beneficial if you are facing serious debt related problems. In case your debt amount is more than ?15,000 with multiple creditors, then this option is the best solution you have. Moreover an asset owner by choosing this program will not risk loosing the valuable asset. Besides, it helps you to make payments at reduced rates towards clearing the debts. This way, you also have a chance to improve your credit ratings.

Now, more and more individuals are opting for IVA because of its numerous benefits. Instead of facing bankruptcy, it is better to take the assistance of this program. To know more about the services, all you have to do is to click a few buttons online and you have suggestions on how to escape debts.