London, United Kingdom (PressExposure) May 07, 2009 -- An individual voluntary arrangement (IVA) is a binding agreement between you and your creditors. Here at My IVA Adviser we help people to organize an IVA.
An individual voluntary arrangement, or VAT, is a debt solution to help someone who is struggling with staff outside reimbursements.
The IVA does this by restructuring the repayment under a new monthly payment affordable, helping the debtor to remain current with the priority expenses, such as guaranteed loans - a mortgage or rent, the cost of and essential life - without fear of legal recovery action being taken against them by their creditors.
Because the IVA is a formal agreement, it protects both parties to attempt to make changes to the agreement after it has been agreed.
IVA will also stop a debtor being harassed by their creditors. This is because one of the fundamental terms of the IVA stop creditors from contacting the debtor, once IVA has begun, and all correspondence must be through an insolvency practitioner. The trustee is chosen by the debtor to attend the proposed IVA, and the trustee oversees or supervises the IVA to an end.
IVA will be under normal conditions last for a term of 5 years, after which the debtor will be considered debt, even if they were unable to repay the full amount of the original debt.
The IVA is particularly appropriate where the debtor has assets they need to protect them from their creditors. The reason is that, once IVA has been agreed, and as long as the debtor complies with IVA, unsecured creditors can not force the sale of the property, they have tended to settle as far as fairness can be released through a standard mortgage.