Free IVA Debt Advice

A number of different financial institutions promote the Individual Voluntary Arrangement (IVA) to encourage easy settlement of dues without initiating the lengthy and tedious formal bankruptcy procedures. The first step in promoting the Individual Voluntary Arrangement (IVA) is to offer free IVA advice on debt to the insolvent debtors in deciding their future course of action in order to avoid the lengthy and tedious bankruptcy proceedings.

Apart from a large number of private financial institutions, the government and other public institutions also offer free Individual Voluntary Arrangement (IVA) advisory services to the debtors desirous of entering into an IVA contract with their unsecured creditors. If the free IVA advice is found to be helpful by the debtor, he may avail the services of the institution in following the complete IVA process. This business opportunity drives the various financial institutions to offer free IVA advisory services to their customers. An Individual Voluntary Arrangement (IVA) is a legal contract between the debtor and the creditors that outlines the terms and conditions for the time bound repayment of the total outstanding debt.

Providing free IVA debt advice to the customers helps the financial institutions in increasing their clientele and they always consider this desirable. The offer of providing free IVA advice is considered as an advertisement or promotional expenditure incurred in the process of soliciting IVA clients. Moreover, an insolvent client is most likely to take up an IVA loan from the same institution that offers him free IVA advice on debt thereby increasing the business opportunity for the financial institution.

Taking up an IVA loan requires an insolvent debtor to make regular repayments without failing. A default in the repayment of an IVA loan installment can force an IVA supervisor to initiate bankruptcy proceedings against the debtor thereby rendering the entire process of going for an IVA meaningless. The different terms and conditions specified in an IVA loan agreement are formulated in such a manner that an insolvent debtor is required to give as much as possible towards the repayment of an IVA loan. Therefore, free IVA advice on managing debt has a multiplier effect on the financial industry in general and the IVA business in particular.