Debt End

When a consumer feels completely buried by debt they may think the only option is bankruptcy. However, an Individual Voluntary Agreement or IVA can provide a much better option for the average consumer. Unlike bankruptcy, an IVA allows the consumer to pay back a portion of their debt and can help by not destroying their current credit rating.

IVA is a completely private matter, so a consumer does not have to fret over being publicly humiliated. This process also keeps an individuals professional dealings separate, so business owners do not have to sell their businesses. In this regard an IVA can only be used by an individual and not a company.

When filing for an IVA a consumer will need to contact a professional company to handle the proceeding. This company will contact all debtors and work out an agreement. An Individual Voluntary Agreement must have at least 75% operation from the creditors involved. This means 75% of a consumer out standing debt must be included not 75% of the businesses. Each creditor will agree to how much they are willing to negotiate the debt for.

Once an agreement has been reached, creditors will forfeit the right to seek further action through a court system. As long as payments are made the creditors must abide by the agreement they have made. An IVA will also put a stop to interest charges being incurred. One great difference between bankruptcy and an IVA is the consumers ability to keep assets. If a consumer has a home or vehicle they will not be forced to sell them. Basically all of the consumers debt will be rolled into one payment that is processes through the company that negotiated the IVA. Once all payments are made and the amount settled on has been payed back the consumer will be debt free. Any remaining amount that was not payed will be wrote of by the creditor as per the terms of the agreement.