Do you have more debt than you can pay back? Are creditors pressuring you monthly, weekly, daily? Are you worried about losing your home or business? Maybe it’s time to consider whether you need to get an IVA.
There are many different solutions for debt relief, but an individual voluntary agreement is more beneficial than most.
Good financial practices, timely debt repayment, and manageable debt loads are important for personal and business finance. When debt becomes uncontrollable and can’t be repaid, interest and charges begin to multiply to critical levels. At some point, action needs to be taken, whether by the debtor or the creditor. An individual voluntary agreement is initiated by the debtor, through the court with a licensed insolvency practitioner. It’s a proposal to repay debt over five years as an alternative to bankruptcy.
The Benefits of an IVA
When you get an IVA, it benefits you as the debtor as well as your creditors. Although it does involve writing off a large percentage of debt, creditors will receive more through an IVA than through bankruptcy. An IVA looks better on credit records than bankruptcy since it involves an active repayment plan. To get an IVA requires the assistance of an insolvency practitioner, which lends third party supervision to the arrangement, reassuring creditors and the court.
Working with a licensed insolvency practitioner, debtors will propose an IVA in court, get relief from continuing debt interest and charges, and save homes and businesses from bankruptcy. There is a legally binding effort at repayment and some measure of debt discharge at the end of the IVA term if the agreement is upheld and repaid by the debtor as agreed. It is a legally binding contract between the debtor and creditors upheld by the court.
Your First Steps
If you decide to get an IVA for debt relief, your first step should be to find a licensed insolvency practitioner through your local court or local Official Receiver’s offices. The practitioner will assist with drafting an IVA proposal, coordinate your IVA with the court and creditors, and supervise the arrangement, making payments to creditors. The practitioner acts as a third party coordinator for the debt relief and repayment activities arising from the accepted agreement.
Debt repayment with an individual voluntary agreement is usually for a period of five years and involves writing off a percentage of debt. During repayment, debt interest and charges are frozen. The IVA stays on your credit record for six years from the date it started.
The Good Alternative to Bankruptcy
It’s usually preferable to use an individual voluntary arrangement for debt relief instead of bankruptcy. It is a good alternative to bankruptcy, but can also be used after bankruptcy. A qualified debt counsellor, accountant, or insolvency practitioner can advise debtors how to best approach individual voluntary arrangements.
Do you have more debt than you can pay back? Are creditors pressuring you monthly, weekly, daily? Are you worried about losing your home or business? Maybe it’s time to consider whether you need to get an IVA.
There are many different solutions for debt relief, but an individual voluntary agreement is more beneficial than most.
Good financial practices, timely debt repayment, and manageable debt loads are important for personal and business finance. When debt becomes uncontrollable and can’t be repaid, interest and charges begin to multiply to critical levels. At some point, action needs to be taken, whether by the debtor or the creditor. An individual voluntary agreement is initiated by the debtor, through the court with a licensed insolvency practitioner. It’s a proposal to repay debt over five years as an alternative to bankruptcy.
The Benefits of an IVA
When you get an IVA, it benefits you as the debtor as well as your creditors. Although it does involve writing off a large percentage of debt, creditors will receive more through an IVA than through bankruptcy. An IVA looks better on credit records than bankruptcy since it involves an active repayment plan. To get an IVA requires the assistance of an insolvency practitioner, which lends third party supervision to the arrangement, reassuring creditors and the court.
Working with a licensed insolvency practitioner, debtors will propose an IVA in court, get relief from continuing debt interest and charges, and save homes and businesses from bankruptcy. There is a legally binding effort at repayment and some measure of debt discharge at the end of the IVA term if the agreement is upheld and repaid by the debtor as agreed. It is a legally binding contract between the debtor and creditors upheld by the court.
Your First Steps
If you decide to get an IVA for debt relief, your first step should be to find a licensed insolvency practitioner through your local court or local Official Receiver’s offices. The practitioner will assist with drafting an IVA proposal, coordinate your IVA with the court and creditors, and supervise the arrangement, making payments to creditors. The practitioner acts as a third party coordinator for the debt relief and repayment activities arising from the accepted agreement.
Debt repayment with an individual voluntary agreement is usually for a period of five years and involves writing off a percentage of debt. During repayment, debt interest and charges are frozen. The IVA stays on your credit record for six years from the date it started.
The Good Alternative to Bankruptcy
It’s usually preferable to use an individual voluntary arrangement for debt relief instead of bankruptcy. It is a good alternative to bankruptcy, but can also be used after bankruptcy. A qualified debt counsellor, accountant, or insolvency practitioner can advise debtors how to best approach individual voluntary arrangements.