What is an IVA Debt Agreement?
For someone who is in debt, an IVA debt agreement can be a lifesaver. An IVA or Individual Voluntary Arrangement is a formal agreement designed for people who have more than two creditors. The arrangement allows for a reduced payment rate on debt. The IVA debt arrangement can be used as a alternative debt plan for those who cannot combine their debts into one manageable debt.
How to get IVA Debt Help
With an IVA, a licensed insolvency professional will provide you with IVA advice and assist you to arrange the IVA. There is a legal procedure as well as a consultation process that is required to determine just how you will be able to repay your creditors. The first step to getting the IVA debt arrangement started is to visit a qualified licensed professional who can make a consultation your current financial situation. Once an assessment is done, the IP will recommend a repayment amount that is needed to help determine just how you will be able to pay back the debts. Using a IVA debt repayment plan is an voluntary gesture and will require your consent to initiate the arrangement plan. A court must also give legal backing to the arrangement.
How does it work as a Pay Plan?
The IVA debt solution is best suited for those who want a reduced payment rate and are still able to repay at least half of their debts. The IVA arrangement is also different from other debt options because it is voluntary and ensures that at least half of the debt is paid back and the arrangement must be notarized in a court. A court must issue an interim order to ensure that no creditor will take legal action against you and once this has been issued, you must have at least one creditor agree to the order for it to become valid.
Having a licensed professional or insolvency professional to assist you with the entire process is a requirement but it also has its benefits. While using the IVA debt solution may not be for everyone, it can be a good option to assist those with a lot of debt.