The Individual Voluntary Arrangement Plan (IVA) can be used to avoid formal bankruptcy, so the owed person will not be restricted by bankruptcy regulations, nor will they have bankruptcy status or a bankruptcy record. This allows the person in debt to continue to work even in sensitive industries. The interest of creditors will be greatly reduced, and all debts can be repaid with fixed interest and fixed loan amounts.

In addition to the number of cards a person in debt can own, the scope of IVA coverage includes arrears of bank private loans, finance company loans, balance transfer loans, savings cooperative loans, student aid loans, taxes, commercial loans, etc. An IVA can be used to acknowledge, process and pay your debts and although this affects the credit score, it is better than continuing to default on the loan or filing for bankruptcy.

There are three steps to set up an IVA. First, you need to find an accountant or a lawyer to make recommendations for debt repayment to the creditors. The second step is to go through a court hearing and issue an interim order. Generally speaking, IVA is suitable for people with a more stable income and debits that reach ten times the monthly salary. Although IVA can lead to bankruptcy, if you are engaged in certain industries, such as the financial industry or the disciplined forces, all employers will be “notified” which can affect promotion in the short term, therefore IVA does not provide flexibility in this instance.