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IVA's Protecting the Consumer Word Count: 505 Summary: As companies who offer IVA's has grown, concern that whether or not people are being offered the right debt solution has also grown rsspect.org A protocol is being put in place to protect the consumer as well as the creditor to ensure Individual Voluntary Arrangements are being offered as a viable solution. Keywords: iva,individual voluntary arrangement,debt solution,financial help Article Body: Not many moons ago the term Individual Voluntary Arrangement, or IVA would have been like speaking a foreign language to alot of people ambafrance-kwt.org Nowadays people are more familiar with the term. There would also have been a time when there were not many IVA companies around, however now, the number of companies offering Individual Voluntary Arrangements have grown dramatically. An IVA, originally an alternative to bankruptcy and is a legally binding agreement between you and your creditors which allows you to pay off an agreed percentage of your debt over 5 years bruceonbass.com Once the period is over, you are debt free. There is growing concern that some firms may be suggesting IVA's as a solution when infact, an IVA is not suitable. Most firms will charge an administration fee when setting out proposals to offer creditors when applying for an IVA bubblewonder.com Perhaps this has encouraged some companies to offer an IVA to people as they will still get paid whether or not the IVA was accepted call2avoidforeclosure.com The loser of course is the client. Because of this, consumer groups have called for more protection for people (and themselves) when it comes to an Individual Voluntary Arrangement. There is now a protocol which is a voluntary code of conduct designed by related consumer groups which hopes to restore people's faith in IVA’s: "The Insolvency Service has facilitated a process which has successfully produced a voluntary code for IVA’s to reflect the changing needs of the market," said Pat McFadden, the government minister responsible for the Insolvency Service. It will provide greater transparency for creditors and debtors alike by using standard clauses and a consistent format." Transparency is very important when is comes to suggesting an IVA as a solution to a debt problem cdnoblehomes.com People as well as creditors need to know that an IVA is the best solution. The government said the protocol should ensure that:
Most people when considering an IVA are not aware of what is deemed to be an acceptable proposal and will go along with what an advisor suggests, trusting that "they know best" charmingdallashomes.com The aim of the protocol is to help the client as well as the creditor to be better aware of the client’s financial position before the IVA process begins. Although this is only a start, it is a step in the right direction, especially for the protection of the consumer.
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