IVA refers to an individual voluntary arrangement initiative. It typically lasts for five years and is intended to reduce the size of your debt by requiring affordable monthly payments. In brief, it is intended to reduce and consolidate your debts into a single, manageable payment.
An IVA is a legally enforceable agreement. This means that if you begin an IVA, you must complete it. This differs from conventional debt management plans, from which you may withdraw at any time without penalty.
Your agreement will be null and void if you are unable to locate an alternative method of funding your monthly payments. If you abruptly find yourself unable to pay your monthly mortgage, your creditors will demand that you file for bankruptcy. This is typically the case because it indicates that your home may be sold, releasing equity that would be distributed to your creditors. Therefore, if you own a property and fail to make your monthly IVA payments, you could be declared bankrupt and evicted. In this situation, the only positive is that all of your unsecured debts would be cleared.
If you are a renter, your creditors will not bother filing for bankruptcy, as they will receive no money from you. Consequently, they would leave the debt unpaid, so that you would still due it and be required to find a method of payment.
Even though you may have paid off a portion of your debt with the IVA payments, the interest will resume accruing on your unsecured debts, and the full amount of the debt will be reinstated - not the reduced quantities imposed as a result of the IVA. Additionally, you will be charged for the IVA itself.
You can always utilize a debt management plan in order to repay the debt. However, they are expensive to use. If you are a renter, you may want to consider filing for bankruptcy. This is due to the fact that no property is at risk, yet it would eliminate all of your unsecured obligations.""
" - https://www.affordablecebu.com/
