Are Individual Voluntary Arrangements or IVAs Too Good To Be True?
If you have never heard of there term Individual Voluntary Arrangements or IVAs, then you are not the only one. It is a process that is actually gaining popularity with people who are in a financial bind because of a debt. An Individual Voluntary Arrangement is a legal agreement that is made between you (as the person in debt), the people or companies to whom the money is owed (such as the banks and credit cards companies) and a licensed insolvency practitioner.
In an IVA, you consent to paying a single, abridged, reasonably priced, monthly sum for a time of three or five years. If after that time, you are not able to pay off the whole debt then the unpaid portion is written off by the creditors. You need not worry about legal repercussions since your creditors are conscious of this and are in agreement with it. IVAs authorize the balance due to be given up for so that you will never have to pay the money back. The good news is that through Individual Voluntary Arrangements, as much as ninety percent of your debt can be canceled. IVAs are a lawful and authorized procedure in which your creditors will not be able to hunt you down so you can pay off your debts outside of your agreement.
This may sound like it’s too good to be true. You might think that it is a form of scam and you might even have been ripped off by someone about this. But the truth is that it an Individual Voluntary Arrangement is actually a law, and one that creditors like at that. How is this so? Well, as a rule, these creditors are usually ready to agree to an IVA for the reason that it brings to a halt their having to expend additional amounts of money going after people with debts owed that can never be paid off. It is also in the best interest of these individuals or companies to accept a decreased recompense or payment because they will not only get back some of the money that is owed, but they also get some tax benefits in doing so. All in all, an IVA is actually a win-win situation, so to speak.
Now that you have information about these Individual Voluntary Arrangements, you might want to go on ahead and get one for yourself. However, it is not as easy as it sounds. This might not be applicable to you, especially if you take out one of those fast UK loans. You must actually incur a debt that exceeds £15,000. Also, you must be a private individual and not a company, not to mention that IVAs are only applicable if you live in England, Wales or Northern Ireland.