Individual Voluntary Arrangement
by admin on 11/11/09 at 3:09 pm
Before choosing the best path towards your financial freedom, and a debt free future, you should first understand what all of your options mean. The fine print, and how it will affect your debt in the long run is important to study up on before choosing. After all, what gave your friends or family a quick success may cost you more money in the long run.
One option is Individual Voluntary Agreement. But what is an IVA, and what can it do for you? This agreement will take the power from the creditors and hand it over to you, the debtor. Using this document will prevent you from being charged with any legal action from the creditors, and only use what money you have for your debt and no more. It also keeps the creditors from adding any extra fees or charges to your current debt. After all, with today’s economy it is unlikely you will be able to pay off your debt without some kind of management tool to help keep you on track, and most people are searching for help to get their financial situation in check.
An Individual Voluntary Agreement can often be a better choice than bankruptcy as it will mean you get to keep your family home – with bankruptcy it would be sold off and the money split between everyone you were in debt to. An IVA is also a private agreement, whereas bankruptcy notices are published in local news papers. This can often cause upset if family members or co-workers see it.
