According to Creditfix - Individual Voluntary Arrangement, is a new term, shortly known as IVA in the parlance of the financial market in the UK. Readers can also know more about this debt solution on the website Lawdepot.com. This article is mainly written for the purpose readers who are keen in knowing the benefits of IVA. If a person is suffering from a series of debt issues he or she can be eligible to apply for IVA program. As a debt solution tool, this IVA plan lots of things to offer for these suffering individuals who are encountering great hardships from the money lenders. This wonderful IVA plan has several advantages and offers a great relief for these individuals.
The Real Benefit The key benefit of IVA lies in its legal bindings through agreements that solve the debt issues faced by these suffering persons. According to such agreement, the issues of debts are solved over a period of time. More importantly, one can be free from debt at the end of IVA plan where all the remaining and unpaid debt will be written off by the creditors, as in many cases the money lenders. In general, the term of IVA plan is said to be around five years and the period may vary from case to case. Also, the IVA program works by consolidating all the debts of an individual so that he or she can pay a single payment on each month. The amount one has to pay is determined by the affordability of the current income and expenditures. By this method, the debt payments of the individual reduce significantly so that the person will be somewhat relieved from the clutches of the creditors. In this context, the IVA plan comes as a boon in offering a great relief to those suffering individuals.
A Complete Private Program An IVA plan is said to be an entirely private agreement made between the concerned individuals and the money lenders who are referred as creditors. Hence this IVA plan is different from the bankruptcy. As in the case of bankruptcy one need go to the court of law and also the IVA agreement between the individual and the money lender will not be listed in the notification in the local newspapers. The IVA plan enjoys a greater degree confidentiality, which is often viewed as a major bonus for people who are considering whether an IVA or bankruptcy is the debt solution for them.
Also, the IVA plan gets approval within a short period of time. It can offer a quick remedy for the suffering individuals so that such person can focus on the other work related issues and lead a normal life. By making the IVA agreement, one is sure to prevent any action from legal action taken by the creditors. Undoubtedly, IVA plan immunised these individuals from the dangerous legal threats offered by the money lenders. More importantly, the IVA agreement prevents all the interest and other financial charges related to the debts and thereby the increase of further debts is arrested.