Managing your debts with an IVA

Individual Voluntary Arrangements, or IVAs, are a debt settlement solution that can be arranged for you by a specialist company. It is a formal legal agreement between an individual and creditors. The individual voluntary arrangement creates terms for monthly payments over a set period and after that period has been completed the remaining debts will be written off.

Debt management with IVA

With IVAs you simply need to get the creditors of 75% of your debt to agree to it, and the remaining 25% will be bound to the legal agreement whether they wish to or not. This is perfect if you owe 75% of your debt to a single creditor and the remaining to others.Here are the reasons why is IVA better for debt settlement.

You can keep trading

You only need to get that single creditor to agree to the IVA, then no matter what the other lenders wish they have bound to the agreement anyway. With an IVA you can keep trading if you are a business owner and are still allowed to have a bank account, you are also less likely to lose your home as you would be with bankruptcy, so an IVA offers you more control. There is a fee to set up an IVA, but the specialist companies who handle it typically factor their fee into the agreed upon monthly payments under the terms of the IVA.

Your interest owed is frozen

The another advantage of an IVA over bankruptcy is that your interest owed is frozen form the time the period under the terms begins, which means your debt can not increase in the interim. Not every debt problem is best solved with an IVA; you need to make sure there is not a better solution before you enter into one. Many debt companies will provide information on IVAs but be careful that you are not dealing with a company that will only suggest an IVA so that they can collect the set-up fees from you.

You can control your debt

Whether an IVA is ideal for your situation or not, you will want to make sure you are dealing with a company that can find a solution that is best for you and your situation. If you think an IVA is your best option, then approach some specialists that have a good reputation, get some feedback from a couple of companies and see who can offer you the best deal for paying back your deal, with the lowest monthly cost and the least amount of time required paying that price.

There are plenty of people who have successfully used IVAs to control their debt, and therefore you can find the companies that have arranged these for them without taking advantage