Individual Voluntary Arrangement

IVA stands for the Individual Voluntary Arrangement. It is an arrangement e is set up by an insolvency practitioner on behalf of yourself to your creditor. It is a formal agreement according to which your creditor is bound to cooperate with in order to enable you to clear your debts. An IVA may remain for a period of 5 years or 6 months.

In this arrangement all your interest are ceased, and your debt will not increase anymore. The monthly payments that you are paying will be consolidated in to a single payment. Once the IVA has set up, your creditors will not be able to harass you regarding the debts because they will be able to communicate with you only with the help of an insolvency practitioner. This is ideal in case you are being threatened by your creditors for the repaying the debt. It is really very amazing that how you get relieved if an IVA is set up and you also know hat by what date you will be free from your debt.

An IVA is a real and most effective alternative to the bankruptcy. There are several benefits of IVA. Some of them are you become debt free in a period of 5 years or less, you can stop the threatening calls from the creditors, save your property from selling for a knockdown price, also remain in it. This will get your life back on track. Opting for IVA rather than bankruptcy will be helpful you, because it shows that you have made an effort to repay all your debt.

You can set up an IVA if you have £15,000 or more as debt or you have debt from three different creditors and have a steady regular income from which you can pay your IVA monthly installment. With an IVA, your interest will stop and you will be able to pay off the debt rather than paying for the interest only. So, these are the reasons why more and more people are going for IVA.