IVA, Government Legislation can help those who are struggling with UK personal debt problems. Those who are struggling with debts over £12,000 may find that an IVA can help them to deal with their debts, without having to face the prospect of bankruptcy.
IVA stands for Individual Voluntary Arrangement, and was introduced as part of the 1986 Insolvency Act. This form of IVA government legislation can be seen as a more practical alternative to bankruptcy.
An IVA is the only debt solution, besides bankruptcy, which allows a certain amount of debt write-off. It means that you can avoid long term implications which are usually associated with bankruptcy. This includes the hindering of future career prospects and the loss of high-value assets, such as your home or your vehicle.
If you are accepted for an IVA, then you will find additional benefits. You only make payments to your creditors for an average period of 60 months. These payments will be based on what you can afford to pay.
IVA's are legally binding to both the debtor and their creditors. This means that, as long as you make the payments to your IVA, your creditors cannot continue to chase you for this debt. In fact, they will not be allowed to contact you at all.
Once you have completed your IVA, you can be debt Free with the help of this IVA Government legislation. After all payments have been made to your IVA, any unpaid debt will be written off and you will become debt free!