Individual Voluntary Arrangements - A Discussion to Aid Your Understanding
In the United Kingdom, Individual Voluntary Arrangements are commonly practiced as an alternative to filing for bankruptcy.
It is an official contract made between creditors and debtors; the agreement is legally binding.
It lets a debtor become debt free with convenience and saves him from the stigma of insolvency; it allows the creditor recover as much debt as possible from a debtor who is on the threshold of bankruptcy.
If you think that entering Individual Voluntary Arrangements will be ideal for you, you must first contact a professional practitioner and discuss your situation with him.
He will be able to tell you whether the option will be best for you.
You need to put forward details about your income and assets to enable the practitioner draw a document regarding how you are going to pay off your debts and how much you need to pay each month.
After that, your Insolvency Practitioner will settle the matter with your creditors and if your creditors agree to the module, your IVA is set-up.
However, it is worthwhile to cast a glance at the conditions that make you eligible for Individual Voluntary Arrangements.
1.
Your unsecured debt amount must be more than 15000 pounds.
2.
You must be a debtor to at least three different creditors.
3.
You must have a regular source of revenue arising from employment.
4.
If you are a house-owner, your mortgage payments will be considered as expenditure cost.
5.
If your circumstances change in course of IVA, the Insolvency Practitioner will proceed on your behalf and present a redrafted proposal to your creditors.
So, you can apply for Individual Voluntary Arrangements only if you fulfill these conditions.
After the arrangement is made, you have to pay a certain amount of money to your Insolvency Practitioner.
The practitioner will deduct his monthly fee from the amount thus handed over and then break up the remaining amount to pay off your creditors.
If the payment is done like this on a regular basis, you will become debt-free in a period of five years.
There are many benefits associated with Individual Voluntary Arrangements.
They are: • Your debts will be frozen once you enter your IVA.
No interest will be added and legal proceedings on you will be stopped.
• You will be allowed to keep your assets so long as they are not considered to be excesses.
• Only disposable income will be taken into consideration while your income is ascertained for Individual Voluntary Arrangements.
So, you are free to pay for your food and lodging and some entertainment while you are in IVA.
• It is confidential and few people are likely to know about your IVA set-up.
• You will no more be harassed by your unsecured creditors.
• A share of your debt will be canceled and disregarded.
It is an official contract made between creditors and debtors; the agreement is legally binding.
It lets a debtor become debt free with convenience and saves him from the stigma of insolvency; it allows the creditor recover as much debt as possible from a debtor who is on the threshold of bankruptcy.
If you think that entering Individual Voluntary Arrangements will be ideal for you, you must first contact a professional practitioner and discuss your situation with him.
He will be able to tell you whether the option will be best for you.
You need to put forward details about your income and assets to enable the practitioner draw a document regarding how you are going to pay off your debts and how much you need to pay each month.
After that, your Insolvency Practitioner will settle the matter with your creditors and if your creditors agree to the module, your IVA is set-up.
However, it is worthwhile to cast a glance at the conditions that make you eligible for Individual Voluntary Arrangements.
1.
Your unsecured debt amount must be more than 15000 pounds.
2.
You must be a debtor to at least three different creditors.
3.
You must have a regular source of revenue arising from employment.
4.
If you are a house-owner, your mortgage payments will be considered as expenditure cost.
5.
If your circumstances change in course of IVA, the Insolvency Practitioner will proceed on your behalf and present a redrafted proposal to your creditors.
So, you can apply for Individual Voluntary Arrangements only if you fulfill these conditions.
After the arrangement is made, you have to pay a certain amount of money to your Insolvency Practitioner.
The practitioner will deduct his monthly fee from the amount thus handed over and then break up the remaining amount to pay off your creditors.
If the payment is done like this on a regular basis, you will become debt-free in a period of five years.
There are many benefits associated with Individual Voluntary Arrangements.
They are: • Your debts will be frozen once you enter your IVA.
No interest will be added and legal proceedings on you will be stopped.
• You will be allowed to keep your assets so long as they are not considered to be excesses.
• Only disposable income will be taken into consideration while your income is ascertained for Individual Voluntary Arrangements.
So, you are free to pay for your food and lodging and some entertainment while you are in IVA.
• It is confidential and few people are likely to know about your IVA set-up.
• You will no more be harassed by your unsecured creditors.
• A share of your debt will be canceled and disregarded.