Could An Iva Get You Out Of A Financial Mess?

By Author: Alisdair Cosgrove
Total Articles: 184
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IVAs have become increasingly popular over the past year or so, with many people that are in high levels of debt finding that this is an ideal solution in a climate where the financial industry is suffering in terms of availability of finance.

For some people debt levels can become unmanageable, and an IVA, or Individual Voluntary Arrangement, can provide an effective and convenient solution to solving debt problems quickly and efficiently.

Over the past couple of years IVAs have become increasingly popular amongst those in debt, and this is largely due to increased advertising and raised awareness about this debt solution option.

Bankruptcy is often considered to be a very harsh solution to sorting out debt problems, but over recent years another solution has become available, which is the IVA, or Individual Voluntary Arrangement.For those with a high level of debt the IVA can prove an effective way to get out of debt far more quickly, and has become known as a softer alternative to bankruptcy.

There are specialist agencies that deal with IVAs, as well debt charities, and this process is a legal ...
... one that must be adhered to. There are also set criteria that you must meet in order to qualify for the IVA process.Part of the requirements to qualify for an IVA include having unsecured debts of at least £15,000 with a range of creditors, and also being in full time employments.

You should not assume that an IVA is an easy way to escape your debts, as it is a long winded process, can have a profound impact on your financial future, and is a legally binding process.You should also consider the benefits of entering into an IVA when making your decision. Some of the benefits that come with an IVA is being able to get rid of all of your unsecured debt in as little as five years, having much of the debt written off where appropriate, and being able to make just one, affordable repayment towards all of your unsecured debts each month, which can easy your financial situation.

With an IVA your single monthly repayment is distributed between the various creditors on a pro rata basis, based on the amount that you owe to each lender, and these repayments usually continue for a period of five years.The IVA is legally binding so you must make sure that over the term of the agreement you stick with the terms and repayments. After the five year period any outstanding balance tends to be written off, leaving you free of debt.

There are various other debt solutions that you can opt for if you do not want to go for an IVA, and this includes debt management plans, consolidation, or informal arrangements with your creditors
Alisdair Cosgrove has been writing finance and mortgage related articles for many years and can find more of his information at the UK site Glitec.co.uk, offering online loans and also a great deals on IVA. Visit Glitec.co.uk today for a great mortgage and loan offer and to read more articles from Alisdair.