An Independent Voluntary Arrangement can be a good option for people who are facing insolvency and don’t want to go through bankruptcy. They basically ensure that your assets are safe whilst giving you the chance to pay off debts gradually. To be eligible for this process you need to have some form of income, and be in a situation of debt over 15,000, owed to more than two creditors. Before you decide to go for this, you need to understand it, and make sure you’re ready for the commitment.
There’s a lot you can do to work out on your own when it comes to assessing whether IVAs are right for you. To begin with you need to look at the size of your debt and how much money you have coming in. Through contacting your Citizen’s Advice Bureau you should be able to get help with this budget, and then from there look into all the options. At this stage it might still be enough to make arrangements with individual creditors rather than going into an insolvency option. Again, the CAB can help to arrange forms for you, and give advice on what to offer creditors given your means.
If it seems as if you are about to face insolvency, but have a form of income, an IVA is a serious option for you. At this point you can start approaching companies that deal with this process. Getting professional help in this way will mean that they take on the role of supervisor in the process, and take over all contact with the creditors, meaning you don’t get hassled. The first step to take is searching the internet for IVA professionals, and then going through their automated assessment to see if you’re eligible for an IVA with them. To be eligible you usually need to be able to pay a minimum of 200 back each month, and be in serious debt.
Shop around for a good deal. You might be in a situation where you need help, but help comes with different terms and conditions, so read the fine print to make sure you’re not locked into something you shouldn’t be.
It can be a stressful and confusing process sorting out debts, but finding the right professionals to handle an IVA can really help make things easier.
There are many resources online where you can find IVA advice.