A lot of jargon is bandied about in regard to personal finance. If you are in debt you need to know what your options are and you certainly don’t want to be put off by words you don’t understand. For example, do you know what an IVA is?
For someone in a lot of debt who is really srtruggling to make repayments an IVA can be absolutely invaluable. Let me explain.
IVA stands for Individual Voluntary Arrangement.
An IVA is s a formal arrangement with all the unsecured creditors you owe money to. It usually lasts for five years after which the debts are wiped. Agreed amounts are payed back to your creditors on a regular basis throughout this period. You would pay into an IVA scheme fund on a regular monthly basis. This would be a regular manageable amount. Both you and your creditors will have agreed to the amount.
This is a really good idea if you can commit to regular payments and want peace of mind. It means no one is chasing you for money, interest is not accumulating out of control and risk are reduced, You could also end up paying far less than the actual debt off during this time.
IVA’s can be a way forward for both people in personal debt or those in business. It is a positive alternative to bankruptcy.
IVAs have many benefits.
- Your home would be protected from any action by unsecured creditors and no bailiffs would be round.
- Your repayments will be mahanageable and controlled
- All interest and charges will be frozen so your current debts will not increase,
Many moons ago I had a threatening letter from a bailiff and I was worried sick. This is not a good position to be in wondering who is going to bang on your door and what they may take. An IVA can really be a good option if things have got to this stage.
If you are considering an IVA do get some free confidential advice from a finance professional. You should not have to pay for this.