If you are struggling to keep from filing bankruptcy and are at a loss for where to turn, you may want to explore the option of an Individual Voluntary Arrangement with any one of a number of IVA companies throughout the UK.
An Individual Voluntary Arrangement, or IVA, is a legally binding agreement that can be an alternative to going bankrupt. Unlike bankruptcy, an IVA can offer a way out from under your mounting debt while allowing you to keep your property. Locating reputable IVA companies is your first step to getting out of debt and repairing your credit status.
Licensed Professionals - An Insolvency Practitioner
Unlike debt management services, Individual Voluntary Arrangements, as we mentioned, are legally binding, therefore IVA companies employ licensed professionals that work with you from deciding if IVA is the right choice for you all the way through to the completion of your agreement. These licensed persons are called Insolvency Practitioners. An Insolvency Practitioner, or IP, will meet with you in order to review your financial situation to determine if an IVA will work for your personal situation. Once the determination has been made that you are a suitable candidate for an Individual Voluntary Arrangement, your IP will begin the process by writing up your proposal.
The Insolvency Practitioner will prepare a proposal of payment arrangements for the meeting of your creditors. Your Individual Voluntary Arrangement proposal will be presented by your IP at this meeting and will then be voted on by your creditors. It will not be necessary for you to attend this meeting, although it is recommended that you remain available by telephone in case you need to be contacted for any reason. In fact, most of the creditors submit their votes via post or facsimile and do not physically attend the meeting either. They will review the proposal and place their vote to accept the proposal or not.
For your Individual Voluntary Arrangement to be approved, you must receive affirmative votes from enough creditors to represent a minimum of 75% of the outstanding debt that you owe. This means that if more than a quarter of your debt is owed to one creditor, and that creditor votes no to your proposal, then your IVA will not be successful. However, should you be able obtain the votes necessary for approval, your financial freedom begins at once. No further legal activity can be pursued by your creditors from that point on.
Continuous Support Until Completion
Your Insolvency Practitioner will continue to work with you long after the IVA is accepted by the creditors. Once you begin your repayment as per your Individual Voluntary Arrangement they will transition into the role of manager over the arrangement. Your IP will oversee that all payments are made by you as agreed and distributed appropriately to your creditors as put forth in the IVA. They are also required to review your finances from time to time for any changes in your financial status.
Upon successful completion of the 60 months of payments, the remainder of your debt, regardless of the balance due, will be written off by the creditors. Your credit record will be considered to be settled and you will have achieved a clean slate to start again in building a positive credit rating. Depending on what the circumstances of your Individual Voluntary Arrangement were, this may mean up to a 65% reduction in the total debt you owed to your various creditors.
IVA companies are all over the UK and they’re ready to assist you in exploring the option of the Individual Voluntary Arrangement. Before you consider filing for bankruptcy, look into IVA companies as an alternative.
If you are struggling to keep from filing bankruptcy and are at a loss for where to turn, you may want to explore the option of an Individual Voluntary Arrangement with any one of a number of IVA companies throughout the UK.
An Individual Voluntary Arrangement, or IVA, is a legally binding agreement that can be an alternative to going bankrupt. Unlike bankruptcy, an IVA can offer a way out from under your mounting debt while allowing you to keep your property. Locating reputable IVA companies is your first step to getting out of debt and repairing your credit status.
Licensed Professionals - An Insolvency Practitioner
Unlike debt management services, Individual Voluntary Arrangements, as we mentioned, are legally binding, therefore IVA companies employ licensed professionals that work with you from deciding if IVA is the right choice for you all the way through to the completion of your agreement. These licensed persons are called Insolvency Practitioners. An Insolvency Practitioner, or IP, will meet with you in order to review your financial situation to determine if an IVA will work for your personal situation. Once the determination has been made that you are a suitable candidate for an Individual Voluntary Arrangement, your IP will begin the process by writing up your proposal.
The Insolvency Practitioner will prepare a proposal of payment arrangements for the meeting of your creditors. Your Individual Voluntary Arrangement proposal will be presented by your IP at this meeting and will then be voted on by your creditors. It will not be necessary for you to attend this meeting, although it is recommended that you remain available by telephone in case you need to be contacted for any reason. In fact, most of the creditors submit their votes via post or facsimile and do not physically attend the meeting either. They will review the proposal and place their vote to accept the proposal or not.
For your Individual Voluntary Arrangement to be approved, you must receive affirmative votes from enough creditors to represent a minimum of 75% of the outstanding debt that you owe. This means that if more than a quarter of your debt is owed to one creditor, and that creditor votes no to your proposal, then your IVA will not be successful. However, should you be able obtain the votes necessary for approval, your financial freedom begins at once. No further legal activity can be pursued by your creditors from that point on.
Continuous Support Until Completion
Your Insolvency Practitioner will continue to work with you long after the IVA is accepted by the creditors. Once you begin your repayment as per your Individual Voluntary Arrangement they will transition into the role of manager over the arrangement. Your IP will oversee that all payments are made by you as agreed and distributed appropriately to your creditors as put forth in the IVA. They are also required to review your finances from time to time for any changes in your financial status.
Upon successful completion of the 60 months of payments, the remainder of your debt, regardless of the balance due, will be written off by the creditors. Your credit record will be considered to be settled and you will have achieved a clean slate to start again in building a positive credit rating. Depending on what the circumstances of your Individual Voluntary Arrangement were, this may mean up to a 65% reduction in the total debt you owed to your various creditors.
IVA companies are all over the UK and they’re ready to assist you in exploring the option of the Individual Voluntary Arrangement. Before you consider filing for bankruptcy, look into IVA companies as an alternative.