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Information On IVAs And Their Benefits
IVA's are individual voluntary arrangements and is an alternative to bankruptcy; especially for those who live in the United Kingdom. Keep in mind, this debt option was first established by the Insolvency Act of 1986 and is known as a formal repayment proposal.
This process begins by first discussing your circumstances with an adviser to see if this choice is the right debt solution for you. In most cases, other alternatives are discussed with you at that time. Then, once you have decided to proceed with this debt solution, you will discuss with your adviser on how much you can pay each month into this arrangement. Keep in mind, you will also need to give some documentation to your adviser such as a driving license or passport, a recent utility bill, details of your creditors, three recent monthly bank statements, a mortgage redemption statement, the original credit agreement on a car you own, and possibly other documents.
Next, you and your adviser will put together your IVA proposal so that it can be presented to your creditors. Be careful not to be pressured into making payments you can't afford. Once you feel satisfied with your proposal, a meeting with the creditors will be made and then your proposal will be sent to your creditors for them to consider.
The next step is the voting and modifications. Keep in mind that creditors may vote in advance of the meeting date. They can accept or reject your proposal; that is their choice. Modifications may also be needed and you will need 75 percent of your creditors to vote in favour of your proposal before it is approved.
Then, once it is approved, a Chairman's report will be made. This will include information on the meeting, how the creditors voted and any modifications that were made to your IVA. If your IVA is not approved, other options will be discussed such as bankruptcy or a debt management plan. Once your application and form have been approved, your monthly contributions will be put into a client bank account in your name. Keep in mind, any fees associated with your IVA will be withdrawn from the money paid into this account before any money is paid to creditors.
Then, every year there will be an annual review to see if or how your circumstances have changed. Such changes might be an increase in salary or an increase in any bills that you have obtained. If there has been a noticeable increase in your salary, you will probably have to increase your contributions.
Most importantly, if you are unable at any point to make your monthly contribution, you need to contact your company quickly to see what you need to do next. If you do not contact your company and continue to miss payments you risk the demise of your IVA.
There are various benefits with his option such as lasting up to five years, finding peace of mind from your creditors, finding a drop in interest and late payment charges and enjoying the fact that there is no adverse effect on your status as a debtor. Keep in mind that if you choose bankruptcy, there are restrictions on certain employees such as those who work as accountants.
Most importantly, as long as you adhere to the terms of the IVA, your creditors cannot interfere with the process. It is important to note, too, that IVA's are safe and reliable; as long as you follow the terms of the agreement. An IVA register is required.
Other benefits are protecting you against legal action. To be clear, this is a legally binding agreement and once it is in place, your creditors will have no right to take legal action against you. In addition, your creditors are not allowed to speak with you. They can only communicate with your practitioner. One disadvantage with IVA is that you can't cancel your IVA. Check out IVA companies soon. Find the peace you deserve.
To conclude, for some this is an option that many like because it protects them from bankruptcy. Apply for an IVA today! Find out how this process can help you.