Details on the Uses of an IVA

June 28, 2012 by  Filed under: Bankruptcy 

The IVA or the individual voluntary arrangement is a type of an agreement that lasts for 5 years and is between a creditor and his debtor. This agreement helps one debtor to get rid of his debt payments so that after the 5 years time period, the creditor is not able to bug him in any case. With the help of an IVA, the debtors are not bothered for any additional payment like extra charges, interest rate etc, so that the creditors cannot bug the debtor and he can easily pay off the debt amount in newly defined loan payment criteria. Online sources can help you with information on it and you can read the following as well.

How it works
Usually the company that you hire which has to provide you with an IVA, will first run a complete analysis on your financial health. This way for a period of 5 years, the company will make up an IVA plan for you based on any financial fluctuations estimated in this time. This way all the payments will also be defined for the debtor to be paid. He does not have to pay the higher amounts that had been redefined on the basis of the default interest rate. When the company talks to the creditors, the creditors cannot argue as this is a legal arrangement and they cannot retreat. After the time of 5 years is over, the debt is officially written off.

Conditions on IVA
However the conditions can be negotiated for the debtor as well. Once you know that you have a debt of around 10,000£ or, you have to pay around 200£ per month. An IVA is also defined as an alternative to bankruptcy. Obviously if an IVA is not successfully followed, it may directly lead the debtor to bankruptcy filing, but that is the contingency. First, the debtor is given the opportunity to avail IVA to the fullest. Apart from this:

1) You should also be classified as an insolvent and be declared that you do not have any money.

2) An IVA is applicable if you do not own any asset worth 300 pounds

3) You should owe around 15000 pounds in debts

4) Motivation is necessary to avoid filing bankruptcy.

5) One should be employed so that there is a confirmed and steady source of monthly income in one’s pocket.

6) If you have debts based on credit cards, store cards etc, only then an IVA is applicable.

Apart from that, there are other alternatives to bankruptcy as well like IVA. One can easily go for the debt relief orders, trust deeds, debt management plans, and debt consolidation etc so that one can get out of the issues of debts in no time.

To find information, you should log on to the many blogs and the forums online that provide you with the information on how to tackle the debt issue situation that you face. This may lead you to look for the best alternative that suits your need and can help you out with its full potential.

Hammad Akhtar is an expert writer in the field of dealing with financial issues. He has written many articles on the topics of personal bankruptcy, IVA, debt issues, asset management etc. You can read all his articles and log on to www.goodbye2debt.co.uk. You can take help from him in any area of issues in your financial health.

Article Source:
http://EzineArticles.com/?expert=Hammad_Akhtar

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