IVA Debt Solution

An Individual Voluntary Arrangement (IVA) is Government legislation, put in place to protect people that are being chased for money they don't have, an IVA is the ideal alternative to bankruptcy. IVAs only work in England and Wales, the Scottish equivalent of an IVA is called a Protected Trust Deed.
For detailed information on IVA's, see: IVA page

Advantages of an IVA debt solution
Essensially, IVA's are a form of debt management, however, unlike other forms of debt management an IVA comes with the following benefits:

With an IVA you only pay what you can afford; your income, mortgage and bills are taken into account.
You can have some or most of your debt written off (up to 75%)
Your debt will not increase; with IVA debt, interest is frozen.
You can pay off your debts quicker (commonly 60 months).
You won't face the same restrictions as those of a bankruptcy.
Assets such as the house are usually unaffected by IVA debt, although in some cases you may be required to release some equity.

Before opting for an IVA, it is important to remember that IVA's were introduced to prevent people from going bankrupt, ideally you should only consider an IVA debt solution if all other options fail or if the debt is too much and you're being threatened with bankruptcy (creditor hassle).

Disadvantages

An IVA is only suitable if the debt is over £15000.
In order for the IVA to be approved, creditors with a 75% value of the debt must agree to the proposals.
An IVA does impair your credit worthiness, you might not be able to borrow while with in an IVA.

How to get started
Presuming you've decided an IVA is the best solution to your debt, the first step would be to find an Insolvency practitioner, who would inform you of all the necessary steps, risks of IVA's and work with you to arrange the IVA.

Note:
An IVA is a binding agreement, if you fail to give full details of your assets and debts or fail to adhere to the terms of the agreement, any of the creditors bound by the agreement may petition for your bankruptcy.

It is wise to seek professional advice before proceeding with an IVA. A debt counsellor will be able to assess your debt situation and suggest options, alternatively; you can try your local Citizens Advice Bureau, where they will also inform you of any other alternatives.

Similar to IVA Debt:
IVA Mortgage - loans for people with bad credit - Bad credit loan - Unsecured loans with bad credit - credit cards for people with bad credit - bad credit credit cards