An Individual Voluntary Arrangement is a legally binding arrangement between you and your creditors, which allows you to pay less than what you actually owe to your debtors. It can be seen as an alternative to bankruptcy, but you can opt for an IVA even if you are already bankrupt.
The Insolvency Act introduced the term Individual Voluntary Arrangement for the first time in 1986. Its procedure includes the employment of a Licensed Insolvency Practitioner who assists you to get to a negotiation with your creditors about the sum you will be giving them in the future. Following a vigilant examination, an offer is given to every creditor mentioning precisely what they can manage to pay every month, and in what time duration. The sum that is put forward to the debtors is based on the financial situation and capability to make those disbursements on a regular basis. Though there are a lot of IVA consultants practicing all over the UK, it is essential to employ a dependable person on whom you have confidence.
Apart from preventing bankruptcy for creditors, an IVA is a good option for the creditors as well, because it usually ensures them higher payments than other alternatives. It is important to offer the creditors a better deal than they would receive from bankruptcy, otherwise, they will reject the offer. In order for the agreement to be finalised, 75 percent of the creditors must agree to it.
Taking an IVA could be just the way out of your debt as it presents a lot of advantages. It can bring your debt to an intensity that you can give in order to repay, and then one can continue with the life with no threat of any legal action. You can also choose to pay a certain amount of money every month to get free from debt within more or less three to five years.
The creditors are not allowed to increase this amount nor can they increase the rate of interest on your debt. Another good thing is that you would not have to communicate with the creditors yourself because your practitioner will be there to do this for you. Therefore, it provides a simple and a hassle free way of your debt repayment.
An IVA lends a hand in keeping the integrity and privacy of a person while he pays his debts, which is different from bankruptcy filing, which needs to be publicized and divulged. Hence, the individual will not have to leave their work place or face humiliation. Conceivably, the major benefit is that, opposite to a bankruptcy case, an IVA does not offer the debtors charge of his possessions or properties. Hence, they would not need to sacrifice possession of their house or fright from legal action.
So, for people who are in a financial difficulty, an IVA will prove to be a pleasant substitute to bankruptcy. After the completion of the time period of an IVA, the left over debt is taken off and the debtor eventually gets debt free. But, in case of failure to make payments, a lawful action can be employed against you.
Before opting for an IVA, ensure that the plan you have selected suits your financial position, so that you can easily make the payments. It is a big commitment, which should be entered into carefully. - 29866
The Insolvency Act introduced the term Individual Voluntary Arrangement for the first time in 1986. Its procedure includes the employment of a Licensed Insolvency Practitioner who assists you to get to a negotiation with your creditors about the sum you will be giving them in the future. Following a vigilant examination, an offer is given to every creditor mentioning precisely what they can manage to pay every month, and in what time duration. The sum that is put forward to the debtors is based on the financial situation and capability to make those disbursements on a regular basis. Though there are a lot of IVA consultants practicing all over the UK, it is essential to employ a dependable person on whom you have confidence.
Apart from preventing bankruptcy for creditors, an IVA is a good option for the creditors as well, because it usually ensures them higher payments than other alternatives. It is important to offer the creditors a better deal than they would receive from bankruptcy, otherwise, they will reject the offer. In order for the agreement to be finalised, 75 percent of the creditors must agree to it.
Taking an IVA could be just the way out of your debt as it presents a lot of advantages. It can bring your debt to an intensity that you can give in order to repay, and then one can continue with the life with no threat of any legal action. You can also choose to pay a certain amount of money every month to get free from debt within more or less three to five years.
The creditors are not allowed to increase this amount nor can they increase the rate of interest on your debt. Another good thing is that you would not have to communicate with the creditors yourself because your practitioner will be there to do this for you. Therefore, it provides a simple and a hassle free way of your debt repayment.
An IVA lends a hand in keeping the integrity and privacy of a person while he pays his debts, which is different from bankruptcy filing, which needs to be publicized and divulged. Hence, the individual will not have to leave their work place or face humiliation. Conceivably, the major benefit is that, opposite to a bankruptcy case, an IVA does not offer the debtors charge of his possessions or properties. Hence, they would not need to sacrifice possession of their house or fright from legal action.
So, for people who are in a financial difficulty, an IVA will prove to be a pleasant substitute to bankruptcy. After the completion of the time period of an IVA, the left over debt is taken off and the debtor eventually gets debt free. But, in case of failure to make payments, a lawful action can be employed against you.
Before opting for an IVA, ensure that the plan you have selected suits your financial position, so that you can easily make the payments. It is a big commitment, which should be entered into carefully. - 29866
About the Author:
Edward Woodwards is a financial consultant. You can take iva help and solutions to your debt problems. Find out more details at his recommended website http://www.iva.org.uk.
