Individual Voluntary Arrangement is a legally binding arrangement made by the court of law between the borrower and creditors to pay off the debt. The debt is restructured and a fixed time frame of normally 5 years is set to return the money to creditors on a monthly basis.
It is a win-win arrangement for the borrower and the creditors because if the debtor files bankruptcy, creditors will get nothing.
Here are some of the major benefits of Individual Voluntary Arrangement or IVA in UK.
* You are supposed to pay only a part of the debt as decided by the court instead of full payment. It will help you get debt free in a set period of time and move on with your life.
* After the agreement is sealed, creditors are legally bound to not take any further legal action against you or make any calls to recover the debt.
* You will be saved from selling your home.
* Monthly IVA payment normally depends on the amount of money you are earning. Hence, it is affordable and convenient.
* IVA freezes contractual interest and charges on unsecured debt to make payments easier.
* You can hire a legit insolvency practitioner to negotiate with the creditors. No need to directly interact with creditors. And most importantly, you can also pay the fees of insolvency practitioner on a monthly basis.
* You must have two separate debts and the total amount should be over 10,000 pounds.
* You should have a spare income of at least 100 pounds per month to claim for IVA.
* However, you cannot include magistrate's court fines, student loan and maintenance arrears ordered by the court.
One must keep some essential things in mind while looking for an insolvency practitioner.
Choose A Specialist
There are general insolvency practitioners who take up all kinds of jobs. But it is better to go with a specialist in such critical times. Insolvency practitioners know the process inside out and are shrewd in negotiations. This means that you can get the best payment plan for your debt without any further mental stress.
Look For Credibility
In such testing times, credibility is what matters. A reliable practitioner will not back stab you and will make best efforts to pull you out of the financial quagmire.
Author’s Bio: Author is an avid writer and blogger. This article is about individual voluntary settlement.
Top Searches - Trending Searches - New Articles - Top Articles - Trending Articles - Featured Articles - Top Members
Copyright © 2020 Uberant.com742,031 total articles and counting.