IVA’s and Personal Debt Relief
An Individual Voluntary Arrangement (IVA) is a debt management plan that is tailored to provide personal debt liquidation services. These are tailor made financial solutions to those in debt, which is an important feature since every family or individual has unique situations that got them into to debt.
In general an IVA will run for at least 5 years after which all debts must be cleared off. This is based on renegotiated repayment instalments and interest rates. During this period and thereafter, the debtor is protected from the creditors and the plan itself has complete protection and no risks.
An IVA results in a lowered amount of debt because of the reduced interest rates. This can be to the tune of some 60-65%. The monthly repayment rates are also negotiated to the lowest possible amount that you can afford. The new monthly repayment method is based on a percentage of the total amount of debt.
Although the principles are almost similar to that of debt consolidation, IVA is different in that it does not lead to an increase in debts or creditors. It provides true debt relief and not just a transfer of debt. Debt consolidation only provides a temporary relief by deferring the debt repayment. To achieve real debt freedom, apply for an IVA today.
The debt management plan developed under an IVA also offers you a specific debt free formula that will give you peace of mind over a long period of time. All solutions are nevertheless specific to your income and spending patterns.