If you are caught up in a bad debt maze and are looking out for ways to get rid of them there are couple of alternatives from filing bankruptcy. IVA is an alternative to bankruptcy filing and helps those who are in bad debt problems. If you are unable to meet your multiple loan payments, credit cards bills and are being harassed by the creditor’s collection calls then you must consider IVA.
IVA is an individual voluntary arrangement used as a financial solution to allay debts. It helps those who owe money, repay a percentage of their loan amount to their respective lenders and credit card company. This will be paid up to 5 years and any amount left after that will be nullified. In other words your pending debt after five years will be considered as settled debt. This Individual voluntary arrangement is signed in front of a licensed insolvency practitioner (IP) and the parties involved are borrower and lender. It is a formal agreement signed by both the consenting parties.
It helps to manage your debts wisely and systematically. You need not face any public embarrassment as there is nothing published in the newspaper about your debts unlike bankruptcy filing. You can still apply for another loan despite of facing an IVA. This is a distant reality in case of a bankruptcy filing, no lender will risk his loan amount. It is the most achievable and most affordable way of getting rid of debts. This agreement between the two parties, creditors and debtors will be kept confidential and private only to the parties. Continue reading ‘Individual Voluntary Arrangement Or Iva Settlement Guide!’ »