IVA debt management refers to the fact that you make an arrangement with creditors. Instead of filing for bankruptcy the creditors will agree to pay an amount that is less than your debts. This can be possible to eliminate your debts up to 75 percent of your debt in total in certain instances.
IVA simply is an acronym for IVA simply means Individual Voluntary arrangement and will be an agreement which has to be drafted by a certified middleman. They are also known as the Insolvency Practitioners (IP) who are specialists in the field of debt management. They negotiate all terms and conditions of your creditors.
A skilled practitioner knows the right way to proceed and offer creditors deals that are accepted. It's the reason it's essential to find a good professional to file an IVA.
Although IVAs were first introduced in 1986, they've been discussed much more frequently in the media because of the current economic downturn. The last year, the number for personal IVAs has increased by 25% in average every quarter. This is in line with the rise in bankruptcies and debts of consumers.
Usually , the agreement is signed for a period of 3 to 5 years in length, with the latter being the most frequent. In the end, the creditors agree not to apply for bankruptcy since they would like to get some of the debt.