IVAs – The Not-So-New Solution To Debt?

Since 1986 IVAs have been available to qualifying Brits, but do debtors actually know of their existence? More still, do debtors know their rights?

First off, what is IVA? IVA stands for Individual Voluntary Arrangement – and it’s become an often happier solution to the stigma of bankruptcy.

An IVA is a binding agreement that reached with your creditors – and here are a few advantages to such an option.

• An IVA is a private agreement between you and your collectors. Yes, future would-be lenders can find out but your private business will not make headlines.
• Once an agreement is made you could quite possibly have lowered interest rates, as well as one singular payment instead of several. In addition, the harassing calls from collectors should stop.
• With an IVA you have rights. Should you come to some sort of repayment agreement you will most likely be able to do so without risking the loss of your home. This is one major advantage over bankruptcy.
• You will gain peace of mind knowing that you’ve resolved your financial woes as simply and effectively as possible.

Depending on your level of debt (and potential ability to repay) you may or may not qualify for an IVA, but it’s worth looking into. Your best bet is to work with a financial professional such as your bank or a debt management agency to see where you stand. Such professionals will act as a mediator to ensure you are making the best choice possible for tackling that debt whilst still having a life.