IVA Advice UK, IVA Company Explains IVA Debt Solution and How it Can Help

Individual Voluntary Arrangement AKA An “IVA” is a solution for people experiencing debt problems, when someone is in serious debt, an IVA is a much less severe alternative to the more widely known option of bankruptcyIn most cases it still allows you the ability to keep your house and car. And does not involve having your assets taken away from youAn insolvency practitioner will be responsible to drawing up any case for an IVA, and has to chose the set amount that will be paid each month, his job is simply to make sure that the creditor gets the best deal possible and that individual concerned is treated fairly and is only asked to pay back what he can afford he is not allowed to favor one over the other or he could risk losing his license.During the course of the IVA the interest and the debts are frozen to prevent the debtor for getting into any further debt and if he keeps to the agreement by paying the required amount each month he will be debt free in 5 yearsIn order for the case to be accepted the Debtor has to have a minimum of 75% of his creditors accept the proposal at the 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 keep up these re-payments for the next 5 years.In order to qualify for an IVA you need toIf you cannot keep up the repayments on the IVA then may risk being made bankrupt by your creditors, your creditors are not able to make you bankrupt unless you step outside the agreement, remember this.If you don’t think that you will be able to keep up the monthly repayments then you may be better off, looking for an alternative solution such as a Debt Management PlanA debt management plan is basically an agreement between you and a company to allow them to manage your debts and deal with your creditors on your behalf, during their negotiations they may even be able to freeze interest and a negotiate a longer re-payment plan to help fit your repayments into your disposable income.

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