To overcome the multiple debts, the Individual Voluntary Advice or IVA is one of the best ways to deal with.
In the United Kingdom, IVA is an official or legal alternative for individuals who want to skip from bankruptcy.
This legal advice is determined and governed under the Title VIII of the Insolvency Act 1986.
It constitutes a formal proposal to pay the lenders by a court administrator.
Usually, the IVA compromises the claims of unsecured lenders, which are the rights of secured lenders largely unchanged.
To define IVA, it can be said that it is a contractual arrangement with lenders.
It can be as flexible as the circumstances of a borrower and based on equity, income, payments to third parties or a combination thereof.
Lenders take a decision at a meeting of lender to consider the IVA proposal.
The lenders need not be worried as the return that they get is often higher than they would receive in bankruptcy.
In the United Kingdom, every year number of individuals or borrowers who are facing this situation is growing with overwhelming levels of debt aimed at debt specialists who advise organizations to offer an alternative to bankruptcy through the use of individual voluntarily agreement.
The IVA is a considered as a substitute to bankruptcy but they are not mutually exclusive.
An individual or borrower can propose an IVA after bankruptcy is made.
If an agreement is approved after bankruptcy then the debtor's request the Court to annul the bankruptcy order - IVAs can only be proposed when the bankruptcy is completed.
If the IVA is proposed after a bankruptcy is made then it is possible to appoint the official receiver to manage the contract.
The arrangements made by the Official Receiver are very limited and have not proven very famous.
This type of arrangement is known as Fast Track Voluntary Agreement and is only needed in certain cases.
There are many online and offline organizations that are willing to offer legal advice at affordable rates.
To locate the best advice, the borrowers must research advisor or expert.
On the Internet, there are some companies who are ready to offer their services for free.