In the UK, the individual voluntary arrangement is actually a formal option for such people who wish to avoid bankruptcy. In simple terms, this is a process or a tool provided by the government for helping you to come out of any financial hardships. In such scenario, when you are struggling with your debt completion, you can definitely opt for an individual voluntary arrangement, or IVA, for getting your creditors to accept a proposal which you are able to afford. But under this scheme you need to prove that you are absolutely not able to clear off all your debts. This can be done by showing the monthly income statements, living costs and additional debt burdens which need to be a lot more than the monthly income. With the help of an IVA, you shall be able to formulate a proper plan regarding the repayment of your debts to the creditors, keeping in mind your level of income and the debt amount.
The IVA was actually developed by part VIII act of 1986 in the UK which comprises of the formal repayment proposal that is presented to the creditors through an insolvency practitioner. In the overall process, a debtor who is not able to clear off the debt is prevented from being bankrupt with the help of the individual voluntary agreement. In this scenario, both the debtor and creditor come into an agreeable point which becomes beneficial for both the parties and then the debt gets cleared off within the agreed period of time. In most of the above mentioned scenarios, the services of the debt management companies are sought out in order to formulate certain plans to make both the parties come into a mutual agreement. One of the major aspects of the individual voluntary agreement is that this is not like any other debt management product that is marketed on television, radio or social media platforms. This one is completely legally binding, which forbids the creditors to take up any forceful action towards the debtors during the agreed period of time.
The IVA is actually made available to a majority of the individuals, sole proprietors and the partners who are experiencing extreme pressures from the creditors for completing their outstanding debts. The IVA process is taken up by those people who own properties and definitely want to get rid of the future possibility of losing their property if they were made bankrupt for being incapable of repaying the debts. The individual voluntary agreement comes along with different benefits for both the debtors and creditors. It is a fact that the creditors will not be benefitted by the debtors if they are made bankrupt, and herein lays the importance of individual voluntary agreement. On one hand it becomes helpful for the debtors to carry out their normal life which would definitely stop if they were declared bankrupt; while on the other hand, it offers the creditors a higher return which would not be availed if the debtors were bankrupt. For more information, contact the IVA experts at IVA Plans.