IVA information

The first and foremost thing one should remember when looking at Individual Voluntary Arrangements is that they are commonly mistaken for debt management plans, which are far from the same thing. IVA’s are not comparable to the ads we see on TV, as there aren’t any upfront fees, and they are setup by licensed professionals. The IVA is a legally binding agreement that, as long as the person in debt pays consistently throughout the term, he or she will be free of the rest of the debt when the term ends.

Anyone can apply towards an IVA plan, regardless of job choice; the only thing that needs to be proven is a consistent income. The creditors are only concerned with the person in debt having enough disposable income to satisfy the owed amount.

There are several upsides to starting an IVA, including having up to 75% of the persons debt removed in five years, the privacy associated with it compared to other management programs, and the IVA keeps creditors from hounding you. However, as with everything, there are a couple of downsides to the matter. For instance, bankruptcy only takes a fifth of the time to clear compared to the IVA, it shows up on one’s credit report for six years, and as mentioned before, it is a legally binding agreement, meaning the person is really held to their word.

You can read further information here.