If You're In Debt - Then An IVA Might Be The Answer To Your Debt Problems

One of the most common questions that I get asked each day is, what exactly is an IVA?

An IVA is a preferable option to bankruptcy and stands for the term "Individual Voluntary Arrangement".

It's basically a formal arrangement between you and your creditors to pay a pre-agreed amount of money towards your debts on a monthly basis, typically over a term from three to five years. And providing all the pre-agreed payments are paid at the agreed times, the remainder of your debts are written off by your creditors.

Quite often this can mean that you effectively walk away from up to 75% of your debts in a matter of weeks.

IVAs can also be set up with just an up front lump sum payment, (if and when funds are available), or a combination of a smaller lump sum payment and a lower monthly payment over a pre-agreed period of time.

Now obviously, individual voluntary arrangements are NOT suitable for everyone. They are structured to help people in certain circumstances to improve their debt problems without the need to file for bankruptcy.

The qualifying criteria and the amount of debt that can be written off very much depends on who your creditors are.

As a general guide, if you owe more than £15,000 spread amongst three or more different creditors, it's possible that you'll be eligible to apply for an IVA, but it's recommended that you speak to the IVA centre to find out if this would be the best option for your specific circumstances and level of debt.

Should an IVA not be an option for you for some reason, many IVA companies will also be able to help you to take advantage of a debt management plan which can quite often involve a reduction in your debt repayment amount and also freeze all future interest payments and charges.

The benefits involved with dealing directly with a professional IVA or debt management company are that you can tap into their experience of dealing with creditors for people in situations just like you and also they are acting solely on your behalf, so have only your best interests in mind when negotiating an appropriate debt payment plan.

Most IVA and debt consolidation centres are professionally qualified, so fully understand the legal aspects involved with each stage of the IVA application process and any possible debt management plan they may feel is a suitable solution to your particular financial situation.

If you feel an IVA might be the answer to your debt problems, take some time to speak to an IVA centre today!

Peter O'Sullivan is a professionally qualified financial consultant, specialising in providing debt solutions and free IVA advice to anyone in the UK who feels their finances are becoming difficult to manage. To find out how he can help you to deal with your debts, call 0800 056 9695 or visit The IVA Centre today, for your copy of his latest Special Report entitled, "7 Things You Must Know About IVA's!" This is a limited time offer, so get your copy today, before it's too late!

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