Information on IVA
An IVA is a true alternative to bankruptcy. An Insolvency Practitioner (IP) is responsible for liaising with your various creditors to help work out terms in your favor and ensure that you adhere to the agreed payment amount.
What is an IVA?
An IVA is a formal, legally binding agreement between a debtor and his creditors. Designed to free you of the burden of debt in five years or less, an IVA does not publicize your insolvency like bankruptcy. As per the agreement an IP helps you distribute a single monthly payment (over a set period of time usually 5 years) equally between participating creditors. If you have any assets (including equity in your property) it maybe made available to your creditors. However you remain in charge of how they are disbursed.
How Will You As A Debtor Benefit From An IVA?
•High interest rates and charges on all your debts will be frozen
•You can retain your home and assets
•Your employment will not be affected
•Re establish your credit rating
•Self employed can continue to trade
•You are rid of creditor harassment
Are There Any Disadvantages With The Choice Of An IVA?
•75% of your creditors have to agree to the terms and conditions of the IVA
•IVA is a debt solution only if you owe £15000 or more to one or more creditors
•You maybe forced into bankruptcy if you dont adhere to the terms of your IVA
•The Equity Release clause in a majority of IVA agreements prevents you from selling your home
The IVA Process
•An appointed Insolvency Practitioner (IP) prepares an IVA proposal for you
•IP files an Interim Order in court to stop/prevent legal action against you
•A creditors meeting decides whether your IVA is accepted or rejected
•When accepted, your IVA comes in to being
Number of IVAs set to Increase this Year
More and more people are agreeing that they can no longer afford to pay back their debts and are looking for debt solutions that work best for their circumstances. Surveys carried out reveal that one in five people possess unsecured debts of more than £10,000. Most debtors are considering an IVA as a practical and effective means to deal with their debts.
Life is all about the choices that you make and what you get out of your life depends on your choice. You made the choice of reading this article on information on IVA and it probably helped you gain a better understanding of the process of an IVA, its pros and cons so you can decide if an IVA is the ideal solution for you.
For more information and help log onto IVA Solutions.
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