Getting out of debt is important for all consumers. Your credit rating is essentially the only way that you’re able to obtain important things in life such as cars, a place to live, and loans to fund them. If you are struggling each month to make payments on time it might be a good idea for you to consider individual voluntary agreements (IVA) as a way to get out of debt. Consult with an insolvency practitioner (IP) to discuss your options for an IVA debt solution.
How Does the IVA Process Work?
You will first meet with an IP to discuss your debt concerns and answer a few qualifying questions. These questions are ideally to find out if you are a good candidate for IVA. After making the decision you will then have to review your financial history to discern a proper repayment plan that will work within your current budget as well as satisfy your creditors.
After you have come up with an agreement it will then be turned over to your creditors for approval. It is up to the creditors to determine if they agree with the arrangement. If all of your creditors agree the IVA will be approved and will also become legally binding. This means that you as the consumer will be responsible for making the payments in a timely manner for the duration of the agreement.
As long as all payments are made in a timely fashion within the 60 month period you will become debt free and all outstanding credit will be settled for an improved credit rating and a end to the never ending web of debt.
Many consumers have taken advantage of IVAs and successfully completed the agreement. It is important that you understand your responsibility when going into this agreement and that you complete your responsibilities accordingly. Your IP will work with you along the way to periodically monitor your repayments and your financial circumstances. This process can be very valuable in helping you to obtain financial security once again. So don’t delay in learning more about how individual voluntary agreements can change your financial status for a lifetime.