Single IVA - when debts are in just one name

Single IVA

Debt was always a major character in the history of civilization, but now more than ever people start to feel its backlash. Do not even think of categorizing yourself among the few who feel stress and despair on a daily basis. In fact the number of people in debt is huge and it is hardly impossible to conduct a survey on the exact number of them. To give you some idea about how grave the situation is, I will just propose the USA. It had $1 trillion only last year, not to speak about the millions accumulated on behalf of the economic crisis only this year. The UK national debt represents the amount that has to be paid by the British Government to the private sector. According to figures published in November 2009, it was estimated to be around £829.7 billion. It was only few weeks ago when the news hit the streets: Dubai the world’s most luxurious piece of land was struggling with growing financial problems. Asia was hit as well.
Single IVA

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Fact is that the entire world is covered in debt. People are implicitly drawn into this state and nobody can tell how far this situation will develop. Under such stringent circumstances, thoughts like bankruptcy and debt management are as common as dirt. People from different countries are on the edge of a cliff called economy. Before admitting defeat, individuals and businesses as well try to resuscitate themselves with a last alternative: the Individual Voluntary Arrangement.

There is really no need in investigating the biography of this legal contract. What is really crucial is to underline its main purpose, namely enabling you and many other people around the world to reach to a compromise with creditors and thus avoid bankruptcy.

Within this industry, financial experts have created several efficient tools to counteract this economical avalanche. Each of them provides a specific shelter for specific needs and debts. Among such we find the Single IVA.

Before we venture into further details, let’s eliminate dodgy interpretations due to the nature of its name.

The name itself can be misleading, here are top three misinterpretations:

Many would think that one single payment can cover for a life’s faulty expenditure.
Some even go that far to link the name to the occasions an IVA can be performed.
Trust me; I have even heard some jokes that define the individual who is supposed to apply for such an agreement, namely singles!

We have “clarified” the worst possible interpretations of the Single IVA and all that is left is to draw a sharpened contour around the following question: what is a Single IVA?

A simple question deserves a simple answer. Practically we are dealing with the same standard IVA application, only that the entire debt amount is on one single name. This type is perfect for each and everybody in general terms. No matter if you are single or married; you enjoy the same advantages as all the other social groups. More than this, if you happen to be married, your partner is not obliged to pay towards the IVA.

Speaking of joined destinies, joint debts can also be included in a single IVA.

Just for the record, when the partner wants to contribute towards the IVA, then we aren’t talking about a Double IVA, but dealing with the so called Assisted IVA. You will find further details about this type, in future articles.

A single IVA has no special restrictions; therefore anybody who meets the minimum requirements can go on boar. Having all of the debts in your name only or jointly with another person, has absolutely no importance.

Having more than £15,000 as debt.
Owing to more than two creditors.
Being able to pay £200 per month.

Those who meet the above criteria and think that their financial situation recently suffered a strong leakage, can “enjoy” a Single IVA and write off a large portion of debt, all of it legally.

The advantages and disadvantages of a Single IVA compared to other IVA types or debt solutions can vary from one individual to the other. Still the main benefits are as follows:

Agreeing on the terms can fasten the process of becoming debt free. Individuals can now become debt free in no more than 5 years.
Major part of your debt will be written off and when I say this, I mean up to 75%.
Being a legal solution, no further charges can be added to the debt.
Individuals get protection against court action.
A plan of fixed monthly payments guarantees the overall success.
Confidentiality is a strong feature: being a private agreement, nobody else than your advisor and the creditors have to know about it.

No matter for what type of IVA you apply for, sticking to the plan is mandatory.