Individual Voluntary Agreement An Alternative to Bankruptcy

If you find yourself knee deep in debts and are struggling to make the ends meet, it is time for you to find a feasible solution to your debt problems. If nothing is done to resolve the debt problems, it would definitely lead to a situation as worse as bankruptcy. Needless to say, your credit score would be trashed after this move.

There are not many debtors, who try to explore available alternatives to bankruptcy. IVA or Individual Voluntary Agreement can prove to be an ideal alternative to bankruptcy. It is also very effective debt solution and till date has helped a lot of debtors to get rid of the burden of debt from their head. Read on to find out more on IVA and how it is a preferred solution to bankruptcy.

What is an IVA?

An IVA is an agreement that takes place between the debtor and creditor. This agreement involves both parties agreeing on a repayment plan; this repayment plan involves paying affordable monthly payments to the creditors. It may call for using a valuable asset in making the due monthly payments to the IVA. You may have an option to use or not use deposit or security while signing an agreement with your creditor.

How is IVA a better option than bankruptcy?

Individual Voluntary Agreement is lot more beneficial than filing a bankruptcy. Here is how:

1. Your Credit record: When you are in need of borrowing credit, credit score and credit record is the single most significant financial factor. Bankruptcy is going to terribly affect your credit score, and would be reflected for as long as 7-10 years. This is surely going to affect your possibility of qualifying for borrowing further credit. In contrast, Individual Voluntary Agreement would be much more soothing to your credit score. By paying regular payments according to agreement, you will rather end up boosting your credit score.

2. IVA- a private debt solution: As opposed to bankruptcy, IVA is fully private debt solution. You won't be dragged to a court and cross questioned about your distraught financial condition, as it happens in case you file for the bankruptcy.

3. The legal implications: People who file bankruptcy are barred from involving in some particular professions like financial and legal jobs. With an IVA, however, there would not any similar legal implications and you would be free to do everything, while you repay your debts.

Thus, we see that IVA insolvency is definitely a much ideal alternative to filing bankruptcy. Negotiate now with your creditors so as to secure an affordable and good deal for repaying your debt.

If you find yourself knee deep in debts and are struggling to make the ends meet, it is time for you to find a feasible solution to your debt problems. If nothing is done to resolve the debt problems, it would definitely lead to a situation as worse as bankruptcy. Needless to say, your credit score would be trashed after this move.

There are not many debtors, who try to explore available alternatives to bankruptcy. IVA or Individual Voluntary Agreement can prove to be an ideal alternative to bankruptcy. It is also very effective debt solution and till date has helped a lot of debtors to get rid of the burden of debt from their head. Read on to find out more on IVA and how it is a preferred solution to bankruptcy.

What is an IVA?

An IVA is an agreement that takes place between the debtor and creditor. This agreement involves both parties agreeing on a repayment plan; this repayment plan involves paying affordable monthly payments to the creditors. It may call for using a valuable asset in making the due monthly payments to the IVA. You may have an option to use or not use deposit or security while signing an agreement with your creditor.

How is IVA a better option than bankruptcy?

Individual Voluntary Agreement is lot more beneficial than filing a bankruptcy. Here is how:

1. Your Credit record: When you are in need of borrowing credit, credit score and credit record is the single most significant financial factor. Bankruptcy is going to terribly affect your credit score, and would be reflected for as long as 7-10 years. This is surely going to affect your possibility of qualifying for borrowing further credit. In contrast, Individual Voluntary Agreement would be much more soothing to your credit score. By paying regular payments according to agreement, you will rather end up boosting your credit score.

2. IVA- a private debt solution: As opposed to bankruptcy, IVA is fully private debt solution. You won't be dragged to a court and cross questioned about your distraught financial condition, as it happens in case you file for the bankruptcy.

3. The legal implications: People who file bankruptcy are barred from involving in some particular professions like financial and legal jobs. With an IVA, however, there would not any similar legal implications and you would be free to do everything, while you repay your debts.

Thus, we see that IVA insolvency is definitely a much ideal alternative to filing bankruptcy. Negotiate now with your creditors so as to secure an affordable and good deal for repaying your debt.