Many people are unaware that an Individual Voluntary Arrangement can be used to significantly reduce the amount they owe creditors. And when facing the thought of bankruptcy because you are only able to repay part of what you owe, a voluntary arrangement should be something you consider.
Voluntary arrangements with creditors are put together by groups like Myvesta in the UK. The individual voluntary agreement is a negotiated agreement with your creditors to create a repayment plan that you can afford, will eliminate your debt and discard any remaining balance you might owe once the agreed upon repayments are made.
Individual Voluntary Arrangements are created by an Insolvency Practitioner that is experienced in putting forward these plans.
When creating Individual Voluntary Arrangements the Insolvency Practitioner will review your current income, expenses and obligations to determine if you are likely to be able to put forth an IVA that might be agreeable to your creditors.
Individual Voluntary Arrangements have come under attack in recent years from credit card companies and loan companies that would rather see debtors repay all they owe or stay on the hook for the entire balance.
People in debt today, that want to get out of debt using an Individual Voluntary Arrangement almost have to fight or be proactive for the privilege of eliminating their debt in full for less than they owe.
Tags: individual voluntary agreement, individual voluntary arrangement, voluntary arrangement
