Wednesday 3rd October, 2007 

An Individual Voluntary Arrangement (IVA) helps debtors get on with their lives states industry spokesman. In a sector where many people are adding to their debt problems by using such solutions as debt consolidation and debt management an IVA stands out as a very useful tool for those struggling with their debt.

The vice-president, Nick O'Reilly, of the Association of Business Recovery Professionals, (R3), cautions against debt solutions where the debts are just frozen. O'Reilly added that debt management solutions do not provide the debtor with a clear fixed time period for the repayment of the debt. However, in signing up for an IVA, the debtor will have a fixed repayment schedule. At the end of this repayment schedule the debtor will be clear of all their debts.

IVA's are extremely useful to those who meet the criteria for one. Not only does it write off a portion of the debt but it also forces the debtor to live within their means, since they cannot take out any more debt. Once the IVA has been satisfied the debtor has then a clean slate.

Although Debtwatchdog is concerned about how IVA's have been marketed in the past, IVA's cannot be ignored as an important solution for those struggling with debt. Like all debt solutions, debt consolidation, debt management etc IVA's are suitable for those who meet their criteria.