Aug 27 2008
IVA - Helps in debt management
People who eventually find themselves trapped in the vicious web of debt leading them towards potential bankruptcy are desperate to find help to rescue them out. The debt solution for these people and especially those leading towards bankruptcy is IVA. IVA is a legal document between the creditor and the borrower and it stands for Individual Voluntary Agreement. Being placed under the Insolvency act of 1986, it aids in helping individuals trapped in bankruptcy.IVA fixes your debt issues by making use of debt management techniques. This help is provided by means of an insolvency practitioner designated by authorized organizations. In accordance to the signed contract, it becomes the duty of the assigned practitioner to help the borrower with his debt situation by helping him in reducing the due loan amount.
In most of the situations up to 75% of the total loan amount can be wiped clean and the amount can then be later paid over a comfortable time period. Complete secrecy is maintained regarding the financial situation of the debtor. Restrictions are not imposed by IVA and once all the payments are cleared which is generally done over a 5 year time period, the debtor is free of debts. Opting for an IVA also does not play havoc with your credit score. Though, it does render them useless and inactive once you are being helped out by IVA. Your credit score can keep on increasing provided you remain regular with your payments. Therefore it also aids in strengthening your credit report. This legal agreement is laced with several advantages.
Firstly, the interest amount is fixed and cannot change with time. Secondly, the debtor is allowed to pay only an agreed amount and therefore you cannot be bothered by the company before taking prior permission from the courts. Thirdly, your financial condition is kept a secret thereby saving you from embarrassment. Fourthly, help in the form of IVA also does not endanger and risk your physical assets like your house as you need not mortgage them here. And lastly, the amount to be paid monthly is very reasonable and easily payable. This fixed amount too cannot be changed by the company over a due course of time.