Individual Voluntary Arrangement: Is It Right for Debtors?

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Is it hard to pay off your debts? Do you find it difficult to deal with your financial deficits? No need to worry anymore! IVA helps debtors repay their debt with formal debt solutions. Do you know what IVA is all about? An Individual Voluntary Arrangement (IVA) is a formal agreement signed by the debtor under the supervision of an insolvency practitioner for an undischarged bankruptcy.  

It requires approval from the court. Once approval is attained, no creditor can directly reach the debtor. If you consider finding an Individual Voluntary Arrangement as the best alternative to pay off the debts, here you will get the IVA 

Pros and how it impacts the debtors’ financial situation.  

Top Benefits that Illustrate that IVA is a Right Solution to the Debtors 

  1. IVA Assists to Repay Budget-Friendly Monthly Repayments 

The first reason one should enter into an IVA is that it helps you decide on an efficient way to pay monthly repayments based on what you can afford. In doing so, Insolvency practitioners do a detailed comprehension of the assets, income, and other considerations.  

The practitioners compute everything by calculating the right amount to pay the creditors. It allows the debtor to choose the installment price that they can afford to pay easily. However, for any situation that changes, the debtor can easily adjust the payment as per convenience.  

IVA Freezes the Interests of the Debts 

One of the reasons to increase debts is adding up the constant interest rate on the borrowed amount. The interest rate generally doubles the debt you owe. Therefore, once a debtor enters IVA or the day IVA is approved, the interest on the borrowed amount or property is frozen. After that, the debtor has only to pay the amount.  

It means you don’t have to worry too much about the balance going up. In addition, IVA makes debt settling a lot easier for the debtor. If you struggle to meet the repayments, enter IVA, which will ultimately help you pay the debts affordably and efficiently. As soon as the IVA is approved, the debt interest is frozen. 

Creditors Don’t Contact You Directly. 

Have you gotten fed up with seeing creditors knocking on your door daily to repay your debts? It not only makes you embarrassed but destroys your reputation. One solution that can help you from facing such situations is applying for an IVA. 

Once the IVA is approved, no creditor can enter your home or office for debt repayments. They can meet the insolvency practitioners regarding the payments but can’t contact you directly. It protects the debtor’s rights and helps regain the reputation among the competitors. 

Avoids Bankruptcy Proceedings 

The day debtors sign the agreement and get approval from the court, all the bankruptcy proceedings stop. No bank can charge the interest on the debts. Moreover, no creditor can chase you to pay the debts. Instead, the Insolvency practitioner can negotiate on your behalf for every repayment. 

No creditor can take any legal action against the debtor. Instead, the creditors need to go through Insolvency practitioners, which ultimately prevent all the bankruptcy and legal proceedings that might be filed against the debtor.  

Wrapping Up 

Dealing and repaying debts is a complicated thing. Living in fear of bankruptcy adversely affects the life of the debtor. Finding the effective debt solution by knowing all the IVA Pros ultimately helps debtors decide if it is the right debt solution or not? 

For example, suppose you are a debtor and cannot afford monthly repayments to the creditors. In that case, IVA lets debtors sign an agreement considering financial situations to make affordable payments to the creditors.

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