The IVA loans services are specifically designed for those people who find there debt burden beyond control. It is a cost effective alternative of bankruptcy. The Individual Voluntary Arrangement, or in short IVA, is a formal debt solution specifically designed to assist a person who is struggling with unaffordable personal repayments on previous debts. The agreement does this by restructuring the expected repayments to a new affordable monthly payment. It helps the debtor to keep up to date with the priority expenses, such as loans against residential property like a mortgage or rent payment, and essential living cost. This agreement helps the debtor to lead a life without the fear of legal recovery action being taken against them by their unsecured creditors.
As the IVA is a formal arrangement, it protects both parties(lenders and creditors) from trying to make adjustments to the arrangement once it has been agreed. An IVA stops a debtor being harassed by their unsecured creditors. This is because one of the fundamental clauses of the IVA stops creditors from contacting the debtor directly. Once the IVA has begun, all correspondence regarding repayment must be through an insolvency practitioner. The insolvency practitioner is chosen by the borrower according to his choice to assist with the IVA proposal, and the insolvency practitioner oversees or supervises the IVA for its full term.
The IVA loan services will, under normal conditions, last for a term of 5 years. After that time frame the debtor will be considered debt free, even if they have not been able to repay the full original level of debt. This service is especially ideal when the debtor has a property they need to protect from their creditors and repossession. This is because once the IVA has been agreed, and so long as the debtor sticks to the IVA norms, the unsecured creditors are unable to force the sale of the property. Instead the lenders settle for as much equity as can be released through a standard re-mortgage.
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