The majority of people needing to find the best debt consolidation and elimination method tend to choose IVA without knowing the major details and information about this procedure. An IVA, Individual Voluntary Arrangement is a legally binding arrangement between the creditors and debtors, where in a formal way debtors make an arrangement of making reduced payments including the total debt amount they are willing to eliminate, paying off only a percentage of the total debt amount. When being in an IVA debts are usually written off after five years. This type of debt management includes professional help and consultancy given by Insolvency practitioners.

This kind of debt settlement solution is the best choice for those individuals who owe major amounts as debts and with the help of this legal agreement have the chance of eliminating financial difficulties by making a formal proposal to the creditors. The monthly payments in an Individual Voluntary Arrangement are based on a disposable and affordable income and once payments are regularly made by the end of the IVA period all outstanding debts are legally written off. According to the amount and financial situation, with an IVA people can get written off up to 65% of their debts.

With an IVA within a reasonable period of time, generally 5 years all debts are settled. During these five years all debt charges and interest are frozen and there will be no creditor phone calls and harassments or additional payment demands. Once you are accepted and it is decided that you are eligible for an IVA you will need to consult with an Insolvency Practitioner and give all the asked details and information regarding your financial situation. After being accepted, an Interim Order application will be made to the court, which will ban creditors to take legal actions against debtors.

Before getting legal, the Individual Voluntary Arrangement prepared by the Insolvency Practitioner has to be voted and accepted by the creditors. After the IVA application is accepted you can start to repay the debts you owe. As long as you keep up with repayments at the end of the agreement you will be debt free. So if you owe large amounts of money and want to become debt free within 5 years without additional interest and late payment charges, creditor harassments, all this in a legal way, protected from court actions with only one monthly payment than you are the perfect candidate for an IVA.