The Individual Voluntary Arrangement (IVA) is an agreement that you make with your credits, assuring that you will pay the whole debt or a part of the debt within a specific time window. It is a kind of legal agreement which will rescue the lives of millions of middle class families. Here, you will actually make consistent payments to an insolvency practitioner. He/she will eventually divide that amount between your creditors.
On the whole, IVA is a formal solution for people holding debts through which the person settles his debts within a specific period of time. Before choosing an IVA, you should make sure that it is right for you. It is flexible by all means but at the same time it might seem expensive for some people and there are certain factors to be considered before choosing IVA.
When is an IVA right for you?
- You should have at least a minimum of two different creditors. In this scenario, creditors are the people who lent you money or whom you owe your money to.
- When you have a spare income of minimum 100 euros or more.
- If you feel you do not want to deal with your creditors in person.
- If you have a minimum of two debts from two different persons.
- When you have debts greater than ten thousand euros.
You do not have to overthink about it, if you do not match the above mentioned criteria. IVA is extremely flexible to cater to everyone’s needs. Moreover there are certain alternatives to an IVA like bankruptcy, debt management plans or a debt relief order. Before going any further you should also consider finding out about the net expense and whether it might affect your assets like home, land, savings etc. Think twice before you act.