IVA is a popular arrangement and is known as Individual Voluntary Arrangement. To know about this concept in detail you must first be aware that many people create multiple debts either due to circumstances or some genuine business problems. But at some point in time they may feel that it is really difficult to handle the financial situation. IVA settlement is apt for a person only if he is under the following circumstances:The debtor has created multiple debts mainly more than 3 debts.
The debtor now finds it very difficult to handle these debts.
He is genuinely undergoing financial pressure and is nearing the state of bankruptcy.
At such times, there are a few options that the debtor can choose. He can either opt for debt consolidation. But this again generates one more debt and is a matter of tension. Then one can also opt for IVA settlement. This gives a really good chance for the borrower or the debtor to make his life tension free.
Now, the following are the benefits of IVA settlement:
IVA settlement gives you a chance to get relieved of your financial pressure. This is because now, the IVA practitioner or insolvency practitioner takes the charges of all your finances once you apply for IVA settlement. Now, all the calculations are made by the practitioner who calculates the total of your monthly disposable asset and your assets valuation. After keeping some income for your monthly expenses the practitioner comes to a final amount and distributes the monthly installments to the creditors in a fair manner.
The creditors hereby lose the right to directly consult the debtor. They have to deal with the IVA practitioner only and must communicate with him. And the best part is that this contract is effective for maximum 5 years and there after any debts pending must be written off.
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