If you are going to be living with an IVA, the chances are you will have to make a few adjustments to your lifestyle but don't let that put you off. In fact, IVAs are expressly designed to help people free themselves from problem debts and begin to enjoy life without the stress of trying to constantly keep on top of unmanageable finances.
This guide to some of the more important factors affecting people adhering to the terms and conditions of Individual Voluntary Arrangements may help you feel less worried by giving you important insights into how you could manage whilst the agreement is operational.
IVAs always last for a minimum of 5 years and your Insolvency Practitioner (IP) should have negotiated agreements which will enable you to live throughout that time without being under any excessive financial strain. You will need to live without resorting to common credit such as credit cards, loans, overdrafts, store cards, etc. If this is a thought which greatly concerns you, perhaps it may help to understand sometimes new situations can make some people feel apprehensive simply through fear of entering unknown territory. If you refocus on all the advantages you would gain by successfully completing an IVA, it may help you to see the agreement as an opportunity to improve life, instead of a burden you feel uneasy about.
Individual Voluntary Arrangements were introduced to allow people to end the stress of living with finances which had become increasingly beyond their control. Many people use the duration of the IVA to lay the foundations for a more secure, more financially stable way of life. This can perhaps help people by perhaps being more readily equipped to avoid similar stressful circumstances in the future. The circumstances that lead to problem debts and current situation will be different for every single individual. No matter how the problems arose, everyone's goal is to face a debt-free future. A good working relationship with your IP should help you journey through the agreement's lifespan more smoothly.
It's essential to let your IP know if your financial circumstances change, and this includes when your finances have increased as well as decreased. This allows them to calculate any necessary changes to your IVA repayment schedule. All Individual Voluntary Arrangements are subject to strict laws and your IP is there to make sure you're getting the support you need to comply. If you successfully complete your IVA, the agreed debts it covered will be written off and you would be ready to begin to rebuild your credit score once more.
One piece of cautionary advice is to realise that for many people, reaching the end of successfully completed IVAs can feel like something of a release. On the other hand, whilst you're now free of the debts it applied to, do exercise caution. It's essential not to become over-committed at this important stage in rebuilding your credit score. Instead, do continue with the principles and practice of the sound financial habits begun under the IVA to protect your best interests at this juncture.
It needn't feel as though life would be impossible under an IVA. Individual Voluntary Arrangements should have been properly arranged by an IP who fully understands your circumstances and everyday life. You should not be expected to live on a budget which would not allow for reasonable everyday expenses. For many people it is the case that their lifestyle has to become somewhat more modest for a certain fixed period of time. However, successfully completing their IVAs allows them to reach their long term goals: rebuilding their credit status and enjoying a new life free from the stress of over-whelming debts.