To find out whether an IVA is the best debt solution for you, you will need an accurate assessment of your current financial situation. An Insolvency Practitioner will need to present your IVA proposal to people you owe money to, and it will need to be agreed upon by the majority of your creditors. If your IVA is not agreed upon and accepted by your creditors, then another debt solution will need to be considered. Sometimes, creditors may propose some changes in your IVA proposal. You can consider and either accept or reject their proposed changes.

You can avoid the inevitable anxiety that sets in when you’re unable to pay your debts month after month with an IVA. In this Individual Voluntary Arrangement, you agree with the creditors to pay only a specific sum which is affordable to you. Typically, you agree to pay for a period of sixty months, depending on the amount of your debt. After that, you will have repaid your debts and you will be debt free.

If creditors agree to an IVA proposal, you have a lot to gain. Creditors may agree to a reduction in the amount of your debt, and they may also lower interest rates. You will need to make timely payments throughout the entire term of your IVA. This will help build your credit score and enable you to emerge from the agreement in good credit standing.