Financial Resource

If a debtor feels that he/she is having a hard time making repayments or is heading towards bankruptcy then that debtor must seek IVA debt free advice. IVA or Individual Voluntary Arrangement helps the debtors and his/her creditors towards settlement of financial issues.

IN UK, IVA was designed by the insolvency act 1986 and is a legal agreement between the borrower and the lenders to liberate the borrower of the earlier debts. The borrower becomes debt free and starts anew in terms of his credit history. Following are the advantages of this programme:

· IVA is planned for a maximum tenure of 5 years. So a borrower becomes completely debt free after that tenure and can start to rebuild his credit history.

· The interest on the loan is frozen which means that the borrower is saved from paying extra money.

· All legal actions against the borrower are also frozen.

· After the contract is signed no creditors can harass the borrower for any payment nor can they make threatening calls to extract any money from the borrower. So peace of mind is guaranteed.

· Around 75% of the total debt is waived and the borrower has to pay the remaining in comfortable monthly repayments.

It is very important to think properly before taking any decision regarding IVA. One should choose an organization which should be professional and independent and not biased. The IVA advice happens to be neutral and considers the lenders and borrowers perspectives when deciding on any matter. When a debtor signs a contract of IVA with an organization, they negotiate with the lenders on his behalf. It will become their responsibility to clear the debts within the decided time period.

To be eligible for IVA one must have more than £15,000 as debts with 3 or more creditors. He/she should be a UK citizen and must have a permanent employment. His/her earnings should be enough to make the repayment excluding bare necessity expenses and mortgage payment.

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