With so many debt companies trying to push the notion of the Individual Voluntary Arrangement on those struggling with debt and some financial advisors commenting it might not be the best solution – the controversy surrounding the IVA is set to storm on.
An IVA is an agreement that is set up between the debtor and the creditors he or she owes money to. It involves removing a large sum of the debt in return for making agreed monthly payments, aimed at benefiting both the individual and the parties they owe money to.
A recent Bank of England survey estimated that nearly 6 million people felt they are currently struggling with their finances. Added to that, record numbers of personal insolvencies have been forecasted for 2007 with IVAs set to overtake bankruptcies as the number one method for servicing insurmountable amounts of debt.
Yet despite the growth in popularity of the IVA, financial officials are still advising caution, as many debt companies are simply attempting to line their own pockets through pushing consumers into agreements.
However, for people who would otherwise be facing a full on bankruptcy, an IVA has to be considered a viable and potentially life-changing alternative. Property ownership can be maintained, businesses can avoid being sold off and all of the humiliation of a bankruptcy can be avoided.
If you’re in debt and considering applying for an IVA, make sure you consider all of the alternatives before making the final decision. There are a number of links and useful informational articles to be found at the IVA Site.
Thomas Baugh writes articles for a number of high profile debt management websites - including http://www.ivasite.com