If you are in a mammoth financial crisis then the only best solution is IVA. The individual voluntary arrangement is a legal agreement between you and your creditor to pay back your debt within a specific period set by the court or competent authority. When you have the IVA, you can get peace of mind. Your creditors couldn’t tease you anymore. They can't even charge the interest on your debts.
Here in the following blog, we will discuss how the IVA helps you. Let’s start with a better understanding
You Can Avoid Bankruptcy
If you are insolvent and want to avoid bankruptcy, the only way out is IVA. The good thing about IVA is that 95 percent of creditors accept this arrangement of payment. You have earned a lot of things in your life for your family but when you find yourself in this financial jeopardy, you become worried.
But if you take this plan, to some extent, you can get rid of such a problem. IVA help and advice in the financial trouble. Do you know why most of the creditors agree to this agreement? Because they can receive more than bankruptcy.
Prevent Legal Action
As you know, the individual voluntary arrangement is legally binding. So, you can avoid any legal problems. The creditors stop calling. You can get peace of mind from the hectic reminders of the creditors. On the other hand, lenders stop sending letters which is very annoying for everyone. But if you have to qualify for this arrangement, you should have the 75 percent
Lower Monthly Payment
IVA is highly affordable for every insolvent person. When you go for IVA due to your circumstances, you have to pay a sufficient amount according to your monthly income. In short, you can easily pay a certain amount.
The legal authority or bank analyzes your income pattern and your assets. Then, they set a specified amount which suits you best. This arrangement can’t disturb your living style to some extent.
Lock Your Interest
When you are in this arrangement, no lenders or creditors can ask for the interest. Your interest in the different things is locked by the lenders. Besides that, you have to pay extra charges on the late payment but if you are bound by the individual voluntary arrangement, you no need to pay extra on late payment.
Flexible Duration or Repayment
Normally, an individual voluntary arrangement is based on a highly flexible time duration of up to 5 years. But it can exceed up to six years. So, you feel at ease when you have this arrangement. Every month you have to pay a certain amount for a long period. In this way, you pay a very small chunk of your monthly income.
No Up-Front Cost
As you know, you have to pay a certain amount before any service. There are a few services that are free from advance fees. But if you talk about the IVA, you can prevent paying the upfront cost. This facility helps you in the lurch.
When things are not in your favor and you still have a bucket list and want to get out of severe financial crises, the best solution is to get the support of individual voluntary arrangements.