Nowadays, more and more people are falling into the clutches of debt just to live their life a bit more lavishly. The result is a debt trap and probable bankruptcy. In this situation, IVA debt advice UK is a lifeline to the borrowers not only to pay off their entire debt but also to rejuvenate their credit history.
Individual Voluntary Advice or IVA debt UK is especially designed to deal with the debts of the borrowers. It is a free advice provided to the borrowers to manage their debts in a more organised manner. To be eligible for IVA, one must have debts over £15,000 with three or more creditors. After applying for IVA debt advice, a licensed Insolvency Practitioner or IP is designated to draw up a plan to help the debtor overcome his debt burden. He negotiates with the creditors and tries to reduce the debt to 75%. The remaining amount is divided into comfortable equated monthly repayments over 5 years. After the last repayment, the outstanding amount of debt is written off. The best thing is that all charges and penalties are waived off and the creditors cannot harass the debtor for the dues.
IVA is a 100% safe and legal programme to avoid bankruptcy. Borrowers with multiple creditors can easily apply for IVA but should be prepared to answer all questions related to monthly income and expenditures asked by the IP. The investigation is important for drawing up the plan. IVA is legally binding for both the debtor and his creditors and any pending legal notices are frozen. This helps the borrower to have peace of mind and he can concentrate in paying off the dues within the specified time limit.
Summary:
IVA debt advice UK is an alternate option for people who are about to file bankruptcy. It is a legally binding agreement, which clears off around 75% of the entire debt within 5 years. It has efficient and trained advisors who help many borrowers to avoid the humiliation of bankruptcy, become debt free and start afresh in terms of his financial status and credit history.
