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What is an IVA?Individual voluntary agreements (IVAs) are designed to provide an affordable and realistic way for those experiencing financial difficulties to settle their debts.They constitute a formal agreement between you and your creditors (the people or companies to which you own money) whereby you agree to make regular, monthly payments that represent a reduced percentage of the total amount you owe. As part of the IVA you agree to meet these payments for a fixed period of time (typically 5 years) after which any remaining debt is cleared. The monthly amount you will be required to pay, and therefore the total percentage of your debt that will be repaid during the term of the IVA, will be calculated on the basis of your disposable income. This means that your payments will be in line with what you can reasonably afford. |
We could help you write off up to 75% of your debt.
These are just some of the lenders we have successfuly negotiated with in order to reduce debt for our clients...
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By taking your disposable income into consideration, IVAs present an opportunity for you to repay a realistic proportion of your debt in a manageable way. However, you should bear in mind that creditors tend to work on a 'necessity' basis and are unlikely to make allowances for luxuries such as holidays when considering your monthly repayments.
As long as you enter into an IVA agreement understanding that they present a reasonable means for you to repay your debts and avoid bankruptcy, not just a easy way to avoid paying what you owe, an IVA arrangement can be beneficial for all parties involved.
You should also be aware that an IVA is a legally binding agreement that will only remain valid if you meet all requested payments. If you default on any payments during the term, the IVA may be deemed invalid and you may once again be responsible for repaying your full debt or risk possible bankruptcy.
Your IVA will be overseen by a Licensed Insolvency Practitioner who will act as the intermediary between you and your creditors. Your Insolvency Practitioner will negotiate repayments with your creditors and then collect your repayments, distributing them to your creditors as he agrees and settles all of their claims.
Once your IVA has been agreed, your creditors should no longer contact you, ask for additional payments, add interest to your debts or impose late payment charges. The only payments you will have to meet are those detailed in your individual voluntary agreement.
As long as you enter into an IVA agreement understanding that they present a reasonable means for you to repay your debts and avoid bankruptcy, not just a easy way to avoid paying what you owe, an IVA arrangement can be beneficial for all parties involved.
You should also be aware that an IVA is a legally binding agreement that will only remain valid if you meet all requested payments. If you default on any payments during the term, the IVA may be deemed invalid and you may once again be responsible for repaying your full debt or risk possible bankruptcy.
Your IVA will be overseen by a Licensed Insolvency Practitioner who will act as the intermediary between you and your creditors. Your Insolvency Practitioner will negotiate repayments with your creditors and then collect your repayments, distributing them to your creditors as he agrees and settles all of their claims.
Once your IVA has been agreed, your creditors should no longer contact you, ask for additional payments, add interest to your debts or impose late payment charges. The only payments you will have to meet are those detailed in your individual voluntary agreement.
Become Debt Free after just 60 months!
How do IVAs work?
You will firstly need to discuss your current financial situation with a Debt Advisor who will be able to advise you as to whether an IVA is a suitable solution for your needs. If you decide to proceed you will be asked to agree on an affordable monthly amount to pay to your creditors throughout the term of the IVA.The amount payable will be based on your monthly earnings minus your necessary expenses and is likely to be in the form of a single monthly payment over a term of 60 months. During the term of the IVA your Insolvency Practitioner may review your financial circumstances to see whether there is a change in the affordability of these repayments.
This information will be included in a formal agreement drawn up by your Insolvency Practitioner that you will need to check and sign - this is formally known as an IVA proposal.
Your creditors will then be contacted and informed that it is your intention to propose an IVA, they will also be asked to suspend any action (legal or otherwise) against you while your IVA is being agreed. A meeting between your creditors will be arranged to discuss your IVA proposal and a copy will also be filed in Court. You do not have to attend either the Court or the meeting between your creditors.
During the meeting, your creditors will be asked to vote either for or against the arrangement. An IVA will be approved if creditors voting 'for' the agreement represent over 75% of the debt owed. If any of the creditors do not vote, it is assumed they agree to the IVA. If a creditor representing over 25% of the debt value votes 'against', the IVA will be rejected.
As the IVA is a legal arrangement, as long as you meet all requested repayments you will be free from all included debts at the end of the IVA term, regardless of the total amount that you have officially paid.
IVAexpert.org introduces to IVADebt Solutions Ltd.
Registered office: Systems Technology Park, Elettra Avenue, Waterlooville, Hampshire PO7 7XW.
© 2007 IVAExpert.org. All rights Reserved.
Registered office: Systems Technology Park, Elettra Avenue, Waterlooville, Hampshire PO7 7XW.
© 2007 IVAExpert.org. All rights Reserved.