The Need For An IVA

I personally don’t understand people filing for bankruptcy just because they can no longer keep up with monthly payments of their debts. Filing for bankruptcy is actually a lose-lose solution because you will instantly lose control over valuable properties and assets as soon as the court approve your plea. Filing bankruptcy will also influence the future of your personal finance substantially; you will find it extremely hard to apply for a loan or start a business venture with investors if your financial record states that you filed for bankruptcy before.

What you should really look into is Individual Voluntary Arrangements or IVA, a program designed to help people having trouble repaying their debts for various reasons. If you can no longer keep up with monthly payments of loans you got due to increasing interest rates and late charges, IVA will be able to help you in more ways than one. To start the program, your personal financial state will be thoroughly analyzed to help you improve aspects of it and make sure you are ready for the next step. Then, your debts will be reconciled and converted into one single IVA loan — usually with 60 months loan period — to help you manage them easier.

The good news is, you will receive substantial amount of debt reduction when you submit to an IVA program. You will only have to pay the amount of monthly payment you can afford to make, and at the end of your IVA program the remaining balance of your debts will be written off. When calculated, the amount of reductions participants receive is usually over 50% of the total amount of their debts. It is safe to say that IVA can be the perfect way out for those of you no longer have the ability to cope with debt issues.