Debt Free Advice
Due to the difficult economic situation that affects people all over the world, getting free debt management advice is becoming more and more difficult.
If you have debt problems and you want to avoid bankruptcy, the Individual Voluntary Arrangement or IVA might be the right solution for you. IVA is a form of insolvency and it is a legal binding agreement between you and your lenders.
What to Do
You must first discuss with an Insolvency Practitioner to see if you can apply for IVA. Afterwards, the expert will make a plan based on the information you provide. This will be discussed with your lenders to see how much you can pay, for what period of time and how the monthly payments will be divided between them.
If they agree, then the IVA will start. Usually, this type of agreement will be signed for a period of five years.
What Are the Advantages?
This type of debt relief could reduce your monthly payments and freeze the interest that the lenders will usually charge. Furthermore, it will stop any further legal actions that your lenders might pursue.
This way, you can avoid bankruptcy; keep your house and other possessions. Also, if you are living in a rented house, you will not be forced to find another one with smaller rent, which might prove to be less suited for your family’s needs.
Are There Disadvantages?
Applying to IVA might allow you to keep your house, but you might have to release some of your equity from it.
Although, if you apply for IVA, your name will not be mentioned in the papers, your name will be published in the Insolvency Register for a period of six years. Keep in mind that this register is public.
If you cannot keep up with your monthly payments, you could face bankruptcy. However, if your situation improves, your monthly payments will increase accordingly.
Applying to IVA will also affect your credit rating; the records will remain in your credit history for six years.
You should take into consideration IVA as a solution for your debts when you are usinga free debt management plan
