IVA or Individual Voluntary Arrangement is a program that is made between the parties with the help of a court as the mediator. It may be worth thousands of dollars. IVA pays off all your debts and a part of the debt is written off by the creditors through mutual agreement. You also agree to pay a monthly premium and the agreement lasts from three years at the minimum to five years at the maximum. The method is a good bill consolidation process as it provides for periodical review and you can reduce the time span by arranging to pay lump sums in between that would also reduce your interest rates consequentially.
If you are not having a high level of income, then IVA may not be suitable for you. It is best for those who can pay a lump sum for the purpose. The danger is that in case of your failure to pay the sums quickly or in time, you may become bankrupt. You may not be able to get any sort of debt help in such situations. This will be pretty dangerous proposition for you if you belong to low and middle income group.
Normally an expert in the trade of insolvency will handle the IVA process of yours and make all the agreements and negotiations with your creditors. The negotiation is for writing off a part of the debt amount. Yet it is the debt consolidation that is preferable method to take you out of debt trap rather than the methods like IVA considering the risks involved.
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