Individual Voluntary Arrangement (IVA)

People are spending a lot and it is good thing that people are spending on technology, education, health, communication and lifestyle but is it a good sign that they are doing all these in credit? Many times I have heard that people take loans to buy a car just because their neighbor bought a car, or a computer just for the sake of their kids. Now, is it really worth to be in debt even when it is not really necessary?

Nowadays, you can get a huge amount of credit from your credit cards and banks to fulfill each and every materialistic need of yours. But it is not only your unnecessary need fulfillment that runs you up in a large debt. There are many unexpected situation that you run into where a debt is really a necessity to get you out of the trouble. Unplanned building work, unexpected taxes, bills and fees, and forgotten birthdays and weddings and many others contributed to financial difficulties.

But what after you are in debt? What if you don’t have money to pay to your creditors? They will surely take you to the court and things will get more difficult after that. Now, here is when IVA comes in to play. IVA (Individual Voluntary Arrangement) helps you to find your way out of debt. It is more than just some debt management programs. It runs over a 60 month period. What actually happens is that you write everything that you have coming in and everything that you have going out, a reasonable monthly plan is then agreed on and the company managing your IVA will then negotiate with your creditors. Once the repayment has been agreed upon everything becomes legal. But it’s not always that the negotiation is a success. Many people are seeking for IVA just to get rid of their debts easily. But IVAs are just for those who are really in need of help and who are unable to clear all their debts at once. The mail advantage that I saw with IVA is that the creditors often write off a lot of your debt. The arrangement is made in such a way that even if you haven’t fully paid off your loan amount once you have made repayments for 60 months you are free of debt. So, if you are really struggling with debt then IVA may be your only way out.