Debts are always a matter of great concern.
It is because debts pose a serious threat to your financial freedom.
The matters can turn worse and you may consider filing bankruptcy.
Prior to the filing of bankruptcy, you should look if there are any other alternatives.
It is in circumstances like these that you can resort to IVA.
IVA will certainly help you to take care of the debt issues in a systematic manner.
An IVA or individual voluntary arrangement is a formal and legally binding document in between you and the creditors to whom you owe money.
IVA is an interim solution, where in you will be able to down size the burden of debts considerably.
Besides these, you will not anymore be charged a high rate of interest and your precious assets will not any more be under any risk.
Further, you will be in a position to negotiate with the creditors, after which you will be making a minimum monthly payment for a fixed term period of 5 years.
The entire proceeding is supervised by an insolvency practitioner.
The insolvency practitioner evaluates your current financial condition and decides on the amount that you have to make.
Further, an application form will be submitted in the court, after which no creditor will be in a position to take any legal against you.
To make things easier, the creditors will convene a meeting, where it will be decided to approve your application form or not.
After going thro ugh the details, creditors will surely approve your IVA, which comes in to effect immediately.
Once everything falls in to place, it is the responsibility of the insolvency practitioner to keep a track on your progress.
Make sure that you do not fail to make the agreed payments.
It is also the duty of the insolvency practitioner to collect the amount and distribute it among the creditors.
IVA is the best alternative available if you really want to get rid of debt issues.
With easy and timely repayment, you can certainly eliminate the debt in a systematic manner.
Creditors also are more than happy, as through IVA they will be able to get a certain amount of payment, which did not seem to be a possibility earlier.