IVA, a unique method to battle with all your financial troubles

With the whole UK economy reeling under the detrimental pressure exerted by the current liquidity crisis. To make the matter more worse, the lack of viable alternatives is adding more to the worries of citizens of UK. At this very moment, Individual Voluntary Arrangement is one way that can help you to battle with this nemesis.


IVA is a sort of professionally programmed set of arrangement that can help you in eliminating the pile of debts. Conceptualised by the professionals like lawyers and accountants, this is one unique way to seek the perfect solution to all your rising debts' problems. Under this professionally structured arrangement, these experts will advise you how to go about your way in a systematic manner.


They will help you in ranking the debts according to the urgency and in meantime will also help you by suggesting potent ways to all repay all of them. What is the most appreciable fact about this whole IVA concept is that the professionals who guide you can also step forward and can even negotiate on your behalf with the concerned parties. In order to get eligible for an IVA, you should be carrying a certain debts' total, which may vary from one institution to another.


It is one process where complete secrecy is assured, irrespective of every thing else. What is more good about the IVA concept is that if you repay all your outstanding dues and discharge all your financial obligations within the time allotted, you will be able to rebuild your credibility in the financial market.


As far as the availing services of IVA is concerned, you need to get the in-depth knowledge about the selected authority. Since trusting some one at the time of this financial crisis in terms of financial matters might be a risky affair, henceforth, it will be good if you also check the past record of the concerned authority.

A helping hand at a penniless state

As said by a wise soul, ' poverty is a punishment to a crime not committed'. Times keep on changing like the skies above. But when the changing times are really harsh, it becomes hard to manage the consistency of one's patience and wisdom. At least during the financial turbulences, we must have a helping hand to pull us out.

The state of bankruptcy is more or less a crime, the only difference is that it is not genuinely your fault to be a bankrupt.

When a person is stuck by bankruptcy, he is literally believed to be rendered penniless. At such a state, he can barely make both the ends meet. To make matters worse, the pressure of debts becomes immense.

The UK government has devised a system for such borrowers who have reached the stage of complete bankruptcy and are failing to scratch out enough funds to pay the debts. These schemes are called as the Individual Voluntary Agreements or IVAs in brief. Particularly formulated for people facing acute affects of bankruptcy, this plan facilitates the repayment of debts as soon as possible. The steps taken by the IVA are always unbiased and are in interest of both the debtors and creditors.

By the Insolvency Act of 1986, the IVA scheme was introduced by the UK Finance. This was an answer to the bothersome, embarrassing affects of bankruptcy. The IVA loans facilitate a negotiable talk between the debtor and the creditor.

The insolvency practitioner deal with the situations and normalise the mayhem between both the parties by solving the problem legally. Once a person is declared bankrupt by the court, he can propose an IVA.

A bankruptcy is announced in a local newspaper, but an IVA is not. An IVA is listed publicly on the Personal Insolvency Register and is recorded by the credit reference agencies. The IVA services can help you to reach a much lower level of debt and is usually a small fraction of your original debt. Moreover, till the time your IVA is valid, the creditors are not allowed to harass you. IVA is of great assistance to the bankrupt debtors as it actually freezes the interest so that your debts don't keep on growing. Being a bankrupt means your status would be publicly announced in the newspapers, hence that would be affecting your professional status and also your ability to hold a public office.

Thus, an IVA process is a lot less strict than bankruptcy and the consequences are much less grievous.

Starting a fresh debt free is now quite easy

When you fail to limit your expenses to match up with your gross and net income, certainly you get demoralised. Because why does an individual go out to work? Obviously to earn more and to meet his basic requirements. However, these days the scenario is quite different. This is just because of multiple reasons. Now you cannot remain satisfied just with the basic things such as a house, clothes and food. Apart from all these, nowadays there are numerous consumer durable goods available. Moreover, high-end gadgets and numerous decorative items etc., are there to incite you in order to enhance your style of living.

You just cannot ignore them and stay devoid of all such expensive items. Moreover, the credit cards are facilitating the people to get everything that beautify their wish-list. As such, now even if you do not have enough money at your disposal then also you can go around shopping. You can now easily avoid the idea of window shopping and do virtual shopping at ease. But, this smooth track has been definitely enhanced by certain loopholes. In certain cases, you fail to resist your thirst to avoid your desires and as such you end up spending more. And now the climax is that you are overburdened with various unnecessary debts. You just cannot avoid them. What now? In such a situation, the debt management officials would help you out.

Your existing debts can be managed very wisely. But perhaps it's not your occupation or your domain to help yourself to jump into a conclusive decision. So, just seek the support of the debt management counsellors to clear away the debts at ease. You might be quite unaware of the fact, that all your debts can be consolidated into a single loan. After that the next step would depend completely on you. Just pay off all the debts at one go or you can even take the option of repaying the borrowed amount in monthly instalments. Your counsellor can help you out to get the best management plans. It has been witnessed that in most of the cases the unplanned loans and credit cards are the root cause of all such debts. People fail to use their loans and cards wisely and start misusing them. The result is heavy debts. But, due to the availability of certain alternatives, you can now again start a fresh debt-free life.

You would find it interesting to note that the debt management plans help you to boost up your credit ratings. Moreover, quite interestingly, you are not required to pledge any security but obviously slightly high rates of interest would come associated with them. So, just enjoy life without any tensions but remember to take smart steps in times of urgency. In other words, get the best debt management help whenever you fall under the category of 'overburdened by debt'.