This is a commonly asked question which the aim this article is to explain in further detail to give you a better understanding of how an IVA works
IVA is commonly used as an abbreviation when talking about individual voluntary arrangement you are more likely to have heard it being mentioned more often than its full name
An IVA is setup by somebody called an insolvency practitioner on behalf of you and your current creditors. It's a legally binding agreement that once accepted by your creditors as long as you stay within the stated agreement and don't miss any monthly payments, your creditors are obliged to cooperate with in order to enable you to clear your unsecured debts completely.
Failure to do so could result them being able to petition for your bankruptcy, you are protected from bankruptcy once in an IVA as long as you meet the payment so don't lose this protection by putting yourself in a situation where you may not be able to fulfill this promise
Typically and IVA will run for 5 years (60 months) at the end of this period any remaining debt will be written off
Once you are in the arrangement you will have your interest frozen thus the debt will stop increasing instantly. The routine monthly payments that you are currently paying to your individual creditors will be consolidated into just one monthly payment, which will be a predefined amount set by the insolvency practitioner. This off course will make paying your debts a lot more manageable.
At this point also your creditors will no longer be able allowed to contact you directly once an IVA has been setup as one of the conditions set by the insolvency practitioner is that all communications are required to pass through him first.
This can be a sigh of relief for some people especially if you're receiving piles of threatening letters every day. For many people it can be quite a positive step starting an IVA stopping your creditors from chasing you and having a date set for when you will be financially stable again can be quite motivating
It also does save you the other problems with going down the bankruptcy root, like not having to sell your house, or having your things taken away. Also it can help protect your carrier there are some professions that you can no longer work in once you go bankrupt these include accounts, lawyers and more.
If you would like free iva advice or advice on a debt management plan then you can speak to one of our advisers at Money Dent & Credit Group PLC, simply go to the following website and fill in your details so that our advisers can asses you situation before contacting you, you are under no obligation to make any decisions and it is entirely up to you if you wish to proceed with any plan offered, we aim to give you the best free IVA advice possible to help you make an informed decision.
Take action today by visiting: http://www.iva-advice-online.com