The Individual Voluntary Arrangement (IVA) refers to a mechanism that allows a person who owes plenty of debt and who is unable to pay back the debt to avoid the humiliation of undergoing a bankruptcy. A Debt Management IVA allows such a person to strike a deal with his creditors to pay back their dues in a specific time frame and in the form of small and easily payable monthly installments. This arrangement allows an insolvent debtor to pay back the amount owed by him in a convenient manner without having to face the impending bankruptcy proceedings.

In this way, an free iva debt advice (IVA) can be considered as a debt management mechanism that allows an insolvent debtor to manage his debt by restructuring the repayment schedule. The restructured repayment schedule is then put before the creditors whose majority approval is required for the Individual Voluntary Arrangement (IVA) to proceed further.

In this manner, the debt owed by an insolvent debtor is managed by restructuring the repayment schedule to suit the needs of both the debtor as well as the creditors. This win-win situation offered by an Individual Voluntary Arrangement (IVA) has made it immensely popular lately. The Debt Management IVA has become a preferred choice of individuals who have accumulated unmanageable levels of debt. Such debtors can either do nothing and face eventual bankruptcy or go for an Individual Voluntary Arrangement (IVA) and restructure the repayment schedule so that they can easily repay their dues to the creditors based on mutually agreed upon terms and conditions.

All the terms and conditions applicable on the repayment schedule are specified in the Individual Voluntary Agreement. This agreement is adopted by a majority vote of the creditors and absolves the debtor of any further action if he promises to make regular Individual Voluntary Arrangement (IVA) payments. However, in case of default on the IVA payment, the creditors are free to initiate legal action against the debtor and that may lead to initiation of bankruptcy proceedings against the insolvent debtor. In this way, Debt Management IVA free iva debt advice acts as a debt management vehicle for an insolvent debtor who wants to avoid bankruptcy.