Individual Voluntary Arrangement AKA An “IVA" is a solution for people experiencing debt problems, when someone is in serious debt, an IVA is a much less severe alternative to the more widely known option of bankruptcy
In most cases it still allows you the ability to keep your house and car. And does not involve having your assets taken away from you
An insolvency practitioner will be responsible to drawing up any case for an IVA, and has to chose the set amount that will be paid each month, his job is simply to make sure that the creditor gets the best deal possible and that individual concerned is treated fairly and is only asked to pay back what he can afford he is not allowed to favor one over the other or he could risk losing his license.
During the course of the IVA the interest and the debts are frozen to prevent the debtor for getting into any further debt and if he keeps to the agreement by paying the required amount each month he will be debt free in 5 years
In order for the case to be accepted the Debtor has to have a minimum of 75% of his creditors accept the proposal at the creditors meeting prepared by the insolvency practitioner
The monthly payments are based on what a household can afford the minimum monthly payment is around £250-£300 a month you will need to prove that you can keep up these re-payments for the next 5 years.
In order to qualify for an IVA you need to
- Have £15,000 worth of unsecured debt
- you need to owe money to 3 or more different creditors
- Employed or have a sufficient alternative income
- Be a resident of England, Wales or Northern Ireland
If you cannot keep up the repayments on the IVA then may risk being made bankrupt by your creditors, your creditors are not able to make you bankrupt unless you step outside the agreement, remember this.
If you don't think that you will be able to keep up the monthly repayments then you may be better off, looking for an alternative solution such as a Debt Management Plan
A debt management plan is basically an agreement between you and a company to allow them to manage your debts and deal with your creditors on your behalf, during their negotiations they may even be able to freeze interest and a negotiate a longer re-payment plan to help fit your repayments into your disposable income.
If you would like free iva advice or advice on a debt management plan then you can speak to one of our advisers at Money Dent & Credit Group PLC, simply go to the following website and fill in your details so that our advisers can asses you situation before contacting you, you are under no obligation to make any decisions and it is entirely up to you if you wish to proceed with any plan offered, we aim to give you the best free IVA advice possible to help you make an informed decision
Take action today by visiting: http://www.iva-advice-online.com