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Tuesday, February 24, 2009

How to Get IVA Debt Help

By Sara Young

It is a sad fact that many individuals in debt today will never be able to say that they are completely free of their creditors. With the cost of living rising and the level of salary payments struggling to keep up, there is less disposable income on offer and debts are rising as a result, to the point that some individuals can no longer afford to repay them at all. That is where the IVA debt help can come in handy.

The IVA, also known as an Individual Voluntary Agreement, lets you get rid of your entire debt within a certain amount of time - usually 5 years. The IVA debt solution lets you pay a portion of your debt every month, and whatever is left after the IVA term is done - is written off. When you are done with your IVA, you are debt free and do not have to worry anymore about the money that you owe.

The IVA debt help is a formal document - an agreement between you and your creditors - that ensures that you are able to pay at least part of your debt back. This is done using an Insolvency Practitioner who makes sure that the agreement is kept by both sides. For 5 years (usually) you will be making lower repayments that are more manageable to you, and then your debt will be written off and you will no longer be in debt.

The IVA is supposed to help creditors recover as much of their money as is realistically possible, and at the same time help people remove their debt without needing to file for bankruptcy. All your income an assets will be evaluated in the beginning of the IVA process to see how much you should be paying each month.

The assets and income included in your IVA application may include your employment income, investments, savings accounts, any other income, and assets like a house, a life policy, or a valuable car.

All of these assets can actually determine just how much you can afford to pay back. Only disposable income is taken into account so an individual applying for an agreement will be able to afford the bills and housing costs, as well as having enough left over to eat and enjoy life to a certain degree!

In the same way that bankruptcy involved court action, so does an Individual Voluntary Arrangement. The court must be informed and appoint the Insolvency Practitioner to help you and to supervise your repayments over the years governed by the agreement.

If you have large debts and you feel that you can not pay them back, an IVA might be the right thing for you. Being in debt is very stressful and getting out of it feels really great. However, an IVA is a big commitment and is not the right thing for everyone. Be sure to seek out an IVA company that will help you figure out if IVA debt help is the right solution for you.

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