It is still not clear to many people how applying for an IVA can benefit them and what the advantages are of undertaking one such arrangement. A situation in which you have come to accumulate an amount of debt too enormous for you to deal with is bad enough; and, as with any other decision you have to make with regards to the future of your finances, it is important to know what the benefits of an IVA are and how it can make a huge difference in every aspect of your life.
Although debt consolidation is a perfectly viable option for people who need help in restructuring their financial situation, it may not be as helpful as an IVA especially for those whose debt has gone over GBP15,000 in total and are on the brink of bankruptcy. With the use of an Individual Voluntary Arrangement, debtors are provided with a chance to settle all of their debt via a repayment schedule indicating an amount to be paid each month throughout a time frame of 3 to 5 years. The services of an IVA company will include an initial assessment of every monetary obligation existing under your name as this will help determine your actual income, the amount needed to provide for living costs including mortgage or any secured loan payments, and then how much to allocate towards full settlement of your debt. The IVA document will be drafted following the assessment and then legally implemented as soon as the creditors who own at least 75% of your accumulated debt express their agreement to it. So long as you are able to abide by the arrangement, there will be no more need to communicate with unscrupulous debt collectors and your property will be shielded from being forfeited. At the end of the repayment period, any remaining amount of debt will be written off and no legal action can be taken against you on account of it.
Remember that an IVA serves to settle only unsecured debts such as those incurred via credit cards or a loan without neither a guarantor nor a collateral. Do not omit declaring all the creditors you currently owe money to as only they will be obligated to comply with the terms of the arrangement. Consulting with an IVA specialist will help enlighten you further about this subject and provide you with the debt help you need in keeping track of your finances and reaping every possible advantage of getting an IVA.