Before you consider the option of a debt management company or bankruptcy, take the time to educate yourself on the option of an Individual Voluntary Arrangement.
There are a number of IVA specialists throughout the UK that can help you to understand what an IVA is and if it is the correct solution for your current financial situation. An Insolvency Practitioner, or IP, is a licensed professional trained to handle the processes of Individual Voluntary Arrangements. They can meet with you to help you decide if an IVA is an option for you to avoid bankruptcy and clear your debts. If you and the Insolvency Practitioner determine that an IVA is right for you, then your IP will be with you throughout the term of the arrangement.
Review Your Financial Situation
The IVA specialists will review your financial situation to determine your disposable income and what you will reasonably be able to repay each month. The most common term of an Individual Voluntary Arrangement is 60 months. Your Insolvency Practitioner will prepare your proposal for submission at the meeting of the creditors. You will most likely not be expected to attend this meeting, although you should be available by phone just in case there is a need to contact you. Most creditors will not be at the meeting either and alternatively submit their votes by post or fax. Your IP will present your proposal to your creditors and then they will vote on it.
In order for your Individual Voluntary Arrangement to gain approval, your proposal must be voted for affirmatively by enough creditors to represent 75% of your debt. This would mean that if one creditor that represented 30% of you debt voted against the proposal, your IVA request would fail. Should you receive the required votes from the creditors and the proposal is approved, any and all legal action against you by you creditors must stop. No further charges or interest will be added to your accounts for the duration of your agreement.
IVA Payments
You will be expected to make the payment as put forth in your proposal on time and in full each month. Your Insolvency Practitioner will begin to act as a manager over your agreement. Whatever IVA specialists you have chosen to work with, they will oversee the receipt of the monthly payments of your arrangement and supervise that the repayment of your creditors is handled as per the arrangement as well. On occasion, your finances will be reviewed by your Insolvency Practitioner for any changes to your financial status. Aside from that, there is nothing left to do but make the one payment monthly and all of the stress and strain of the overwhelming debt will be gone and in 5 years time it will all be behind you.
Your Debts Cleared
Once you have completed the payments as agreed for the 60 month term of your arrangement, whatever debt remains is cleared out and you are able to get a fresh start financially. Depending upon your particular situation, that may be a reduction of up to 65% of the original debt owed. Regardless of the balance that remains, your debt will be paid in full. Your IVA specialists will see to all of the details and you need to simply make you payments in a timely fashion as per the agreement and you will then have clean slate.
So, take your time when locating the IVA specialists that are right for your particular situation and gather their details. You may find that an Individual Voluntary Agreement is a suitable substitution to bankruptcy where you can retain your property and have a chance to start fresh.
Before you consider the option of a debt management company or bankruptcy, take the time to educate yourself on the option of an Individual Voluntary Arrangement.
There are a number of IVA specialists throughout the UK that can help you to understand what an IVA is and if it is the correct solution for your current financial situation. An Insolvency Practitioner, or IP, is a licensed professional trained to handle the processes of Individual Voluntary Arrangements. They can meet with you to help you decide if an IVA is an option for you to avoid bankruptcy and clear your debts. If you and the Insolvency Practitioner determine that an IVA is right for you, then your IP will be with you throughout the term of the arrangement.
Review Your Financial Situation
The IVA specialists will review your financial situation to determine your disposable income and what you will reasonably be able to repay each month. The most common term of an Individual Voluntary Arrangement is 60 months. Your Insolvency Practitioner will prepare your proposal for submission at the meeting of the creditors. You will most likely not be expected to attend this meeting, although you should be available by phone just in case there is a need to contact you. Most creditors will not be at the meeting either and alternatively submit their votes by post or fax. Your IP will present your proposal to your creditors and then they will vote on it.
In order for your Individual Voluntary Arrangement to gain approval, your proposal must be voted for affirmatively by enough creditors to represent 75% of your debt. This would mean that if one creditor that represented 30% of you debt voted against the proposal, your IVA request would fail. Should you receive the required votes from the creditors and the proposal is approved, any and all legal action against you by you creditors must stop. No further charges or interest will be added to your accounts for the duration of your agreement.
IVA Payments
You will be expected to make the payment as put forth in your proposal on time and in full each month. Your Insolvency Practitioner will begin to act as a manager over your agreement. Whatever IVA specialists you have chosen to work with, they will oversee the receipt of the monthly payments of your arrangement and supervise that the repayment of your creditors is handled as per the arrangement as well. On occasion, your finances will be reviewed by your Insolvency Practitioner for any changes to your financial status. Aside from that, there is nothing left to do but make the one payment monthly and all of the stress and strain of the overwhelming debt will be gone and in 5 years time it will all be behind you.
Your Debts Cleared
Once you have completed the payments as agreed for the 60 month term of your arrangement, whatever debt remains is cleared out and you are able to get a fresh start financially. Depending upon your particular situation, that may be a reduction of up to 65% of the original debt owed. Regardless of the balance that remains, your debt will be paid in full. Your IVA specialists will see to all of the details and you need to simply make you payments in a timely fashion as per the agreement and you will then have clean slate.
So, take your time when locating the IVA specialists that are right for your particular situation and gather their details. You may find that an Individual Voluntary Agreement is a suitable substitution to bankruptcy where you can retain your property and have a chance to start fresh.