By financen | October 8, 2009 - 3:22 pm - Posted in Individual Voluntary Assignment

After the Insolvency ACT 1986, the UK government came up with an agreement that is made between the debtor and the creditor to repay their debts in regular installments. This repayment term can extend up to a period of 5 years and is known as Individual Voluntary Arrangement. This arrangement has a lot of strong points with the following advantages.

Through the individual voluntary arrangement, you can repay your debts within a period of five years without a hitch.

Debts can be paid off faster if you can arrange extra cash on certain months and make lump sum payments.

The agreement between the lender and the borrower is kept in confidence.


Individual voluntary arrangements are not published in the newspapers or in any other manner.

Bankruptcy is complicated and in most cases, the proceedings are pricey. IVA can be a lot affordable.

Individual voluntary arrangement has a positive impact on your credit ratings. Bankruptcy will hurt your credit scores and will stay on your credit report for 7 years.

Bankruptcy has certain limitations and job restrictions. You may have a hard time if you are in between jobs. Whereas, if you look into IVA, there is no limitation and you can carry on with your job while your debts are getting repaid with your creditors.

It is very important in the IVA procedure that you abide by the rules and terms set with the creditors. You will not be hounded by your creditors and cannot hold out your money, except when you fail to pay.

Creditors have the right to ask for their money if you default on your payments. There will not be any risk to your assets and other properties if you are making regular payments to your creditors.

You cannot be bothered with conditions and demands by the lenders after your debts have been repaid.

Talk to an individual voluntary arrangement expert and he will suggest you the best possible solution. They will consider your business or financial situation while working out the suitable options. You can actually save yourself from IVA bankruptcy.

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