IVA is the abbreviation of Individual Voluntary Arrangement. An Individual Voluntary Arrangement, or IVA, is a legal binding debt solution designed to assist a person who is struggling with unaffordable personal repayments or lacking the means to repay the loan amount on time. This agreement restructures the expected repayments to a new affordable monthly payment and helps the debtor to keep up to date with the priority expenses, such as loans against property, rent payment, and essential living cost. There is no fear of legal recovery action being taken against the borrower by his unsecured creditors.
Because the IVA is a legal binding arrangement, it protects both parties from trying to make adjustments to the arrangement once it comes into force. This agreement will also stop a debtor being harassed by their creditors. This is because one of the fundamental terms of the IVA that stops lenders from contacting the debtor directly, once the IVA has begun, and all correspondence must be through the insolvency practitioner hired by the borrower. The insolvency practitioner is chosen by the debtor to assist with the IVA proposal and he takes his fee for this purpose. The insolvency practitioner oversees or supervises the IVA for its full term and the smooth repayment of the debt amount.
An Individual voluntary agreement will under normal conditions last for a time period of 5 years. After this time frame, the debtor will be considered debt free, even if they have not been able to repay the full original amount of debt. This agreement is especially suitable when the debtor has a property which he needs to protect from his unsecured creditors. This is because once the agreement is in force, and so long as the debtor adheres to the IVA terms, the unsecured creditors are unable to force the sale of the property. Instead they have to settle for as much equity as can be released via a standard re-mortgage.
The Individual voluntary agreement is also extremely suitable as a debt solution when the debtor has an occupation which may be at risk should the debtor be made bankrupt. Occupations like accountants or legal professionals, or indeed an occupation where there is deemed to be a high level of responsibility or trust such as a Police Officer, someone in the armed services or a bank employee, all find themselves protected by Individual voluntary agreement. This agreement is a real alternative debt solution to bankruptcy. This is a private arrangement between the debtor and the creditors, and although it will appear on the IVA register. This agreement is not made public which is done in the case in bankruptcy.
Compared to debt management, the Individual voluntary agreement is better solution. Debt management is not legal binding so the lenders can deviate from from their promises at any point of time. But in case of IVA, this fear is not there. Apart from this debt management is also not effective when the debt burden is exceptionally high.
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Another American family going down....O:(
By: sandra | 28-08-2008
How does one live if they have no money or charge cards? My husband is in the mortgage business and the bottom dropped out of it, so we had to live on charge cards, we went from $125,000 to $25,000 per year, now we have no health insurance, we are both on medications, we have maxed out all charge cards which we bought food , gas, medicine, we are 55 and 60 years old, and we have no idea what is going to happen to us, but I can guess sadly. What is your advice, besides praying? Thank you...we live in Indiana..no jobs here! Sandy Jackson ...psjack12@att.net
Paying bills on time -- How can I correct this?? Anyone else been successful PLEASE CHIME IN.
By: nomoredebt77 | 28-08-2008
I want to improve my credit score and have been told it starts with paying bills on time. I don't have a lot of credit card debt, thankfully. However, I'd like to know how to correct the lay payments I do have. Mainly it's my monthly rent and carnote. If I were to pay these items on time, I would come up short on other bills. My rent is due on the 1st of each month and my car note is due around the end of the month. My rent is $1400 a month and conceiveably, I could make that payment with one paycheck. But it always seems like I'm coming up short!
Any ideas??
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By: Wprrysbrg | 26-08-2008
From 2003 to 2008, I paid about $3500 off in debt bills & according to real estate companies I paid off my mobile home. Why doesn't anything reflect a paid in full status. I have debt collectors still harrassing me about bills that have been paid years ago. How do I get them to stop harrassing me?
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