{"id":11897,"date":"2011-10-30T14:44:47","date_gmt":"2011-10-30T14:44:47","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=11897"},"modified":"2019-10-30T15:13:06","modified_gmt":"2019-10-30T15:13:06","slug":"what-an-iva-does","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/what-an-iva-does\/","title":{"rendered":"What an IVA does"},"content":{"rendered":"\n

The point of an IVA is to give people who cannot meet their debt payments a way to settle those debts within the framework of a legal contract. If you have personal unsecured debt that is no longer within your control, then an IVA may keep you from becoming bankrupt.<\/p>\n\n\n\n\n\n\n\n

Negotiate<\/h2>\n\n\n\n

Individual Voluntary Arrangements are essentially a way to \nrenegotiate your credit agreements, in circumstances in which you cannot\n meet the requirements as they currently stand. If you end up becoming \nbankrupt, the chances are your creditors will receive back less of the \nfunds you owe them than what happens with an IVA. This means that \ncreditors are often inclined to accept IVA proposals.<\/p>\n\n\n\n

Control<\/h2>\n\n\n\n

Rather than going down the route of bankruptcy, in which you \nbasically relinquish the responsibility for your debt, through an IVA \nyou retain control of the debt and attempt to settle it in a manageable \nway. An IVA proposal is put to your creditors, and is an offer you are \nmaking to pay them back a certain amount over a period.<\/p>\n\n\n\n

\"Pay<\/figure>\n\n\n\n

Future<\/h2>\n\n\n\n

Once a successful IVA is complete, i.e. the IVA period has elapsed \nand you have continued to meet the requirements, the debts included it \nwill be considered settled by the relevant creditors. In many cases, the\n amount you have paid back will in fact be only a portion of what you \noriginally owed the creditors, but they must abide by the IVA and not \npursue your debts any further.<\/p>\n\n\n\n

Legal contract<\/h2>\n\n\n\n

The IVA is a legal contract binding both borrower and lender to its \nterms. This means that during the IVA, any creditors whose debts are \nincluded in it cannot take any legal action against you for those debts.\n IVAs therefore afford you an attractive level of legal protection. \nHowever, if you fail to keep to the terms of the IVA, i.e. to make your \nmonthly payments, there is a chance that it may fail, leaving you once \nmore exposed to court action for outstanding debts.<\/p>\n\n\n\n

Manageable<\/h2>\n\n\n\n

IVAs are not a way to avoid paying your debts back, but rather a way \nto settle them that fits within the reality of your financial situation.\n Through an IVA, you can only pay an amount that you can manage while \nstill maintaining a good standard of living. This means that, in order \nto get an IVA, you must have sufficient income to pay a reasonable \namount in monthly payments.<\/p>\n\n\n\n

As well as avoiding bankruptcy, IVAs have a lesser impact on your \ncredit rating, and allow you to work towards being debt free in the \nfuture. With bankruptcy, any income or assets you may have in the future\n will always be under threat, whereas with an IVA you can leave the \ndebts behind and look forward to better financial stability.<\/p>\n\n\n\n

The point of an IVA then is to strike a balance between the interests\n of both creditor and borrower. A compromise is reached between you \npaying back at least some of what you owe, but doing it in a way that is\n realistically manageable.<\/p>\n","protected":false},"excerpt":{"rendered":"

The point of an IVA is to give people who cannot meet their debt payments a way to settle those debts within the framework of a legal contract.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-11897","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=11897"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11897\/revisions"}],"predecessor-version":[{"id":11923,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11897\/revisions\/11923"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=11897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=11897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=11897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}