The IVA is known as a solution to those people who are in debt. However, that is the only definition they know about it and a lot of people mistaken it with a solution to something else. The IVA or the Individual Voluntary Agreement is a great help to those people who have financial crisis. It is true that this is for people with debt because it is known to be a debt free solution. Once approved of the IVA, people can now pay their debt as affordable for them and also after the duration of the agreement, they can already be debt free. This is available in countries such as England, Northern Ireland, and Wales. It is also available in Scotland, wherein it is called as Protective Trust Deed. It is a good help for people with debt may it be an individual who is self- employed, traders, and partners.
The IVA usually runs up to 5 or 6 years, depending on the proposal. Usually it can extend up to a year, depending if there are assets needed to be released. Although it is can be considered good news for people with debt, not all people can use this as a solution. This is why it is important to consult an expert first before wanting to apply for an IVA. There are still other debt management options that may be better for you to use aside from IVA.
Check out the website HYPERLINK “http://www.ivaplan.co.uk/” http://www.ivaplan.co.uk/ to know more about the other alternatives for IVA. But before going to the proposal, you must qualify first to get an IVA. Usually the qualification would be for the applicant to be a resident of any of the countries mentioned above, one who has stable income, and one who has an unsecured debt of not lower than £15,000. Another qualification would be for the applicant to have two or more creditors. When you do not qualify, you can still check other debt management options that can help you.
When you are advised by the experts to get an IVA, you can now process your application. This set up is done through an Insolvency Practitioner (IP). The IP will be the key person handling all the requirements in order for you and your creditors to get the proposal approved. The IP is not just anybody, because he /she must be licensed and qualified to do insolvencies. This is because it is a crucial task, and if one is not licensed then you may not get your proposal to be approved. The IP will be the one to draft the approval, with your help.
Your task is to tell the IP in full detail, your current financial situation, debts, assets, and other information he might need to know so that your proposal will be compelling. Usually it is always approved by the creditors if they think that it is also beneficial to them, and if the points are discussed fluently. Another thing you need to know about the IP is that he will be the one to speak on your behalf with the creditors. It is a good thing because in IVA, they may not take any legal actions against you. This is at your advantage, aside from the advantage that you will only make a monthly repayment that is affordable to you.
Once that the term is done, the remaining debt will have to be written off. It is sure full of advantages, but it also has risks you must also know. The risks shall also be discussed by the IP. Usually, there are no upfront fees charged but it all depends on where you choose to get an IVA help. The fees that you should pay for the IP will already be enclosed with the monthly repayments you need to pay. The IP will be the one to supervise the monthly repayments so if you fail to do so, then the IP has the power to cancel out the agreement which can worsen your current financial situation. When approved of the IVA, you need to take the process seriously so it can help you to be debt free. for more details about the IVA, visit IVAPlan.