About Individual Voluntary Agreement

2007-03-08 10:33:40

( Health )



Life does not always go as you planned. You may experience illness, job loss or even a bankruptcy. Saving money for these types of emergencies is a good way to circumvent the potential effects. However, you cannot always prepare for these types of situations. When you find yourself at a loss, it is better to seek the advice of a professional and go through your options.

A possible alternative to bankruptcy is an individual voluntary agreement commonly known as an IVA. Basically, it is an agreement between you and your creditors to pay part of your debt in a specified length of time. Most voluntary agreements are kept on record for about six years starting from the date of the IVA.

You as the debtor are the only one who can apply for an individual voluntary agreement. Your creditors cannot apply for an IVA for you. However, it is not all up to you. Depending on your circumstances, the court will decide whether an individual voluntary agreement is more applicable than a bankruptcy. You may want to consult with your lawyer if you are eligible for an IVA.

There are several advantages when you go for an IVA. Your creditors will likely be more flexible as they can recover more money compared to a bankruptcy. They may not consider taking your home or any of you assets. The interest on your outstanding accounts will be frozen. Credit may still be available to you in the course of the IVA, but at a significantly higher interest rate. And the costs associated with an individual voluntary agreement are higher than the costs associated with a bankruptcy.

An IVA will still allow your business to be operational. If the majority of your creditors agree to an IVA, all your creditors will also be bound by the agreement. Regular payments that are going to be made to your creditors will be higher compared to the payments you need to make if you declare bankruptcy. And your creditors can still take any of your assets if the amount of debts is significant.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.