Inty wrote :
What is an IVA, it seems to be a good way of getting yourself out of a hole….the benefits seem great, is there a downside? There must be long term consequences.
IVAs – yet another one of those acronyms which the financial services industry use! It stands for Individual Voluntary Arrangement and is a formal agreement between the person who owes money (called “the debtor”) and the people he or she owes money to (called “the creditors”). IVAs set out a formal plan for how the debtor is going to repay the creditors over (usually) a five year period. Unlike a debt management plan, which is a much more informal arrangement, an IVA is set up by a licensed insolvency practitioner.
The key benefits of an IVA are that the debtors assets are protected and any debt not repaid at the end of the agreement has to be written off by the creditors. IVAs also avoid the more serious consequences of going bankrupt. They key thing, though, is to get some proper professional advice because your personal circumstances (amount of debt, income etc) all have a bearing on what the best solution may be.
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