Individual Voluntary Arrangement IVA, an alternative to

An Individual Voluntary Arrangement (IVA) is an alternative to bankruptcy. If you have a substantial amount of unsecured debt an IVA could be your best solution.

IVAs are controlled by government legislation and can only be set up by licensed Insolvency Practitioners. An IVA acts as a legally binding agreement between you and your creditors, freezing interest charges on your debt and setting an affordable monthly payment amount over an agreed fixed period (usually 5 years).

It is important to remember that you should only consider an IVA if you have sufficient money available to contribute towards repaying your debts each month or additional assets which could be taken into consideration.

Disadvantages of Bankruptcy

Notices placed in the press Potential loss of assets such as your home, business and car Long term effect on your ability to apply for a credit or a mortgage Restriction to work within certain professions or hold a position of office Your utility suppliers ' gas, electricity etc ' informed Your bank and building society accounts closed

IVA could help you with:

The unpaid balance of your debts is written off ' as much as 75% One affordable monthly payment, usually for five years Protects you from further action by your creditors Your creditors are legally bound by the terms of the agreement No uncertainty: you know how much you have to pay Alternative to bankruptcy No public notices: an IVA is between you and your creditors

Bankruptcy is not only option when getting out of serious debt?

About the author: Greg Penn specialises in debt advice and help articles. For more information please visit http://www.freemanjones.co.uk