Individual Voluntary Arrangement (IVA) is a legal agreement with your creditors to pay off the debts owed (or at least a part of the debt). Before applying for an IVA, you will have to take the help of an insolvency practitioner. Applying for IVA is an alternative to filing for bankruptcy.
In a creditors meeting, each creditor votes for or against the IVA proposal. If there are 75% votes in favor of the IVA proposal, then it is approved. After you have qualified for IVA, each creditor will try to recover, at least 25% of the actual debt amount you owe to them. _________________ SCOTT
Use your credit account responsibly and enjoy a debt free life.
1) There is reduction in the debt amount by negotiating with your creditors.
2) The interest and penalty charges for late or missed payments are waived-off.
3) Once you are into a IVA program, creditors cannot take any further action against you.
4) It stops all harassing collection calls and saves you of the mental stress.
5) You can be debt free after the completion of the IVA program.
Hope this will help _________________ Looking forward to a debt-free life.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.