IVAs (Individual Voluntary Arrangements) help you to deal with your debts. Before taking any decision about this arrangement, you have to understand this procedure and its effects.
An IVA acts as an agreement between a debtor and his/her creditors to pay debts (total debts or parts of obligations). You have to make regular payments to an authorized specialist known as an IP (insolvency practitioner). They can work on your behalf to distribute available money between your creditors mentioned in IVA.
For IVA, the unsecured debts should be almost £15,000. This range may depend on individual creditors. The repayments are free from a minimum or maximum level, except an acceptable range for your creditors. The IVA will end after repaying an agreed amount. Before thinking about IVA Help & Advice, see the benefits of IVAs.
- Your insolvency practitioner may help you to work on your debts affordable.
- It is the responsibility of your IP to contact all creditors and convince them to agree to an IVA for your benefits.
- An IVA agreement can save you from the actions of creditors. They can’t make you bankrupt or take you to court.
- Your charges and interest will be stopped.
During the setup process of IVAs, your insolvency practitioner can convince the court to issue orders to save you from creditors. These orders are enough to stop your creditors from taking any action against you.
Advice to live a debt free life
Make sure to consult your service provider for independent advice to deal with debt problems. With these suggestions and help, you can learn to deal with your debt issues. The IP may charge a fee to negotiate with your creditors. He is responsible for managing your IVA so that he may ask for a price. Before entering an agreement, you have to understand the cost of IVA.
Simple steps to get IVAs
IP can help you to set up IVAs, so you have to prove to insolvency practitioner that you are insolvent. You can only make some regular payments. See these steps to get IVAs.
- Contact an independent and free debt advice firm to ensure that IVA is right for you.
- If you are eligible for IVA, you have to find an authorized IP to work for you. They can help you in the preparation of IVA and send this agreement to your creditors.
- In the third step, the IP assists you in the preparation of IV. For this purpose, you have to provide these details:
- Income and assets that you will use for payment of debts
- Your expenditures, such as food and household bills
- Your debt, such as charges or interest
- You have to provide a complete list of your creditors. If you miss even a single creditor, he can give an application to the court to cancel your IVA.
- After this, your IP is responsible for meeting with your creditors. He will convince your creditors to accept IVA and represent you. If creditors (holding over 75% of debts) accent it, your IVA will apply to each creditor.
- Once your IVA is accepted, your IP will become your IVA supervisor. They will be responsible for managing your payments for creditors and distribute money between them as per the terms of IVA.
After getting an IVA, if you are failed to maintain your monthly payments, your creditors have a right to cancel your individual voluntary agreement. After the cancellation of IVA, the creditors can take other actions against you. They can make you insolvent or take you to court. If your financial situation becomes worse, talk to your IP instantly. He can deal with your creditors for a lower payment.