Excellent financial alternative for those who do not wish to consider bankruptcy
An IVA is a legal binding agreement and helps you become debt free within 5 years as well as giving you legal protection from further interest and charges being added to your debts. For this, fist of all the Insolvency Practitioner assess your financial situation and, if feasible, put you forward for an IVA. The licensed Insolvency Practitioners will need to "nominate" you for the IVA. This nomination is simply part of the process and means they feel an IVA is an appropriate solution. Then the practitioner draw up your "proposals", based on the information you provide. They are aware about your proposals and they allow you to put forward the best offer of repayment that you can afford within your budget. The offer could be a lump sum amount at one time or regular contributions in the form of EMIs usually for 5 years.
After it, the copy of your proposals is sent to each of your creditors, who are invited to vote to either accept or reject the agreement. When a majority of your creditors (at least 75% of the value of the total debt is in the form of an acceptance) vote in favour, then the agreement is approved and will be legally binding for all lender. Even those who may have refrained from voting or those who rejected the proposal are bound to obey the rules of the agreement.
Once your Individual voluntary arrangement is approved, you simply begin the agreed payments or pay the lump sum into the arrangement. as an effect, all calls and letters from your creditors must cease. When the agreed payments have been completed the remainder of the debt will be cleared, make you debt free. With the help of this agreement,you could be debt free in 5 years. All interest and charges on your unsecured debts and other existing debts will be frozen. If you stick to the terms of your arrangement, you will be protected from any further court action by your lenders. They will also be prohibited from sending letters or telephoning you as long as you are loyal to the agreement.
Once the individual voluntary arrangement is successfully completed your total debts are effectively written off. after it you can have a fresh start. This is an excellent financial alternative for those who do not wish to consider bankruptcy or cannot go bankrupt because of their job. All unsecured creditors are bound to obey the terms of IVA. Your monthly contributions towards the debt burden are based on your ability to pay. The greatest advantage is that Individual Voluntary Arrangements are not published in local newspapers, unlike bankruptcy. So, this agreement does not affect professions such as the Police Force and Armed Forces, neither will it affect your ability to hold public office or act as a company director.
The disadvantages of an Individual Voluntary Arrangement is that You are required to stick to a budget for the term of the arrangement (usually five years). All your assets and liabilities must be declared, if you own assets of excessive value, the creditors can ask that they be released for the benefit of the lenders.
After it, the copy of your proposals is sent to each of your creditors, who are invited to vote to either accept or reject the agreement. When a majority of your creditors (at least 75% of the value of the total debt is in the form of an acceptance) vote in favour, then the agreement is approved and will be legally binding for all lender. Even those who may have refrained from voting or those who rejected the proposal are bound to obey the rules of the agreement.
Once your Individual voluntary arrangement is approved, you simply begin the agreed payments or pay the lump sum into the arrangement. as an effect, all calls and letters from your creditors must cease. When the agreed payments have been completed the remainder of the debt will be cleared, make you debt free. With the help of this agreement,you could be debt free in 5 years. All interest and charges on your unsecured debts and other existing debts will be frozen. If you stick to the terms of your arrangement, you will be protected from any further court action by your lenders. They will also be prohibited from sending letters or telephoning you as long as you are loyal to the agreement.
Once the individual voluntary arrangement is successfully completed your total debts are effectively written off. after it you can have a fresh start. This is an excellent financial alternative for those who do not wish to consider bankruptcy or cannot go bankrupt because of their job. All unsecured creditors are bound to obey the terms of IVA. Your monthly contributions towards the debt burden are based on your ability to pay. The greatest advantage is that Individual Voluntary Arrangements are not published in local newspapers, unlike bankruptcy. So, this agreement does not affect professions such as the Police Force and Armed Forces, neither will it affect your ability to hold public office or act as a company director.
The disadvantages of an Individual Voluntary Arrangement is that You are required to stick to a budget for the term of the arrangement (usually five years). All your assets and liabilities must be declared, if you own assets of excessive value, the creditors can ask that they be released for the benefit of the lenders.
