There are plenty of ways to settle debts problems suitable for debtor depending on his financial situation and magnitude of problems. VA is one of the debt relief methods where the debtor himself has to negotiate with his creditor to convince him on terms related to IVA.IVA stands for Individual Voluntary Arrangement. Just like bankruptcy this process also involves court procedure. It is a formal deal or agreement between creditor and debtor, once the IVA is signed the debtor no longer has to deal with the creditor.
IVA usually allows the debtor to pay less than he actually owes to creditors and also time is specified for how long the debtor will pay his debt. After this process, the debt is liquidated without any need to declare bankruptcy. Here are some situations where IVA can be the best possible way to solve your debt struggles.
1) You own a house and do not want to lose it
If you own a house and do not want to declare bankruptcy because bankruptcy v=can cause you to sell your house to pay for your rent. In this case, IVA is a better option than debt relief and a better alternative of bankruptcy. Because if the debtor is not agreed to your offer od debt relief plan and has started legal court proceedings against you, still you can start IVA for saving yourself from bankruptcy
2) You are afraid of losing your job
If you have a job that you cannot continue once the bankruptcy is declared for example if you are a police officer, works in armed forces or have any other government job that can be lost due to bankruptcy. In this case, bankruptcy is definitely not a good option at all so IVA can be the best possible option available.
3) You own a business
Bankruptcy can seriously affect your business as it will have negative impacts and will leave a bad impression on your business partners and clients as well so you would never want to declare bankruptcy in this case either, so the other option is IVA.
3) Have spare income to solve debt problems
You have a backup plan or have a saving or a source of income that can help you to pay your debt then you do not have to declare bankruptcy
4) Don’t want to sell your car
Bankruptcy can cause you to sell your car if it worth more than a specific price.IVA can save your car from selling and you can enjoy the possession of your car.
5) Do not want to sell lose your asset
Bankrupt also but your asset on the risk of selling if you own an asset that you would never like to sell in that case IVA secure your assets and also solve your debt problems.
Conclusion
IVA debt restructuring is one of many debt restructuring methods but it formal and involves court procedure just like bankruptcy. Iva can save your job, assets, car, house, and business. If you own any of these and do not want to lose, then this is the best alternative of bankruptcy.
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