Individual Voluntary Arrangement AKA A "IVA" is a solution for people who have debt problems, when someone is in serious debt, an IVA is a much less serious alternative to the more widely known the possibility of bankruptcy
In most cases, it is still gives you the ability to keep house and car. And do not involve having resources taken away from you
An insolvency practitioner will be responsible for drawing up any case of an IVA advice, and has chosen to set amount to be paid each month, his job is only to ensure that a creditor getting the best deal, and that the individual concerned will be treated fairly and are only asked to pay back what he can afford to, he is not allowed to favor one over the other, or he could risk losing its license.
In the course of the IVA interest rates and debt is frozen to prevent the debtor in order to bring about any further debt, and if he sticks to the agreement by paying the required amount each month, he will be debt free in 5 years
In order that the case should be allowed the debtor is to have a minimum of 75% of its creditors to accept the proposal for 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 stay up to these re-payments for the next 5 years.
To qualify for an IVA you need to
* Ha £ 15,000 worth of unsecured debt
* Do you owe money to 3 or more different creditors
* Employed or have an adequate alternative income
* To be living in England, Wales or Northern Ireland
If you can not keep up repayments on May IVA then risk being made bankrupt by creditors, creditors are not in a position to make you bankrupt unless you step out of the agreement, you must remember this.
If you do not believe that you will be able to keep up the monthly repayments then you may be better, looking for an alternative solution such as a Debt Management Plan
A debt management plan is in principle an agreement between you and a company to allow them to manage your debt and an agreement with creditors on your behalf, during their negotiations, they may even be able to freeze interest rates and negotiate a longer re-payment plan to contribute to fit your repayments in disposable income.
If you want free IVA advice or guidance in a debt management plan then you can talk to one of our advisers on Money Dent & Credit Group PLC, just visit the following web site and fill in your details so that our consultants can asses the situation before I get in touch with you, you are not required to make any decisions, and it is entirely up to you if you wish to proceed with a plan that is offered, we aim to provide you with the best free IVA advice possible to make an informed decision
