The ultimate guide to IVA |
Posted: July 17, 2018 |
If you have a debt that seems impossible to get rid of, and you live in England or Wales, then this law may help you. Before asking for bankruptcy, you should learn about IVA’s. And before getting an IVA, you should learn as much as you can about it, because this is more than a solution. It is a system to put you back in your feet and get you moving. Today, we want you to understand the basics about these simple agreements. What An IVA is an Individual Voluntary Agreement. It is a way to pay a debt as a last resource before bankruptcy. But it is not as bad as it sounds. This may be the actual solution to your problems. Imagine that someone calculates with your normal incomes how much they could take away from you without making it impossible for you to live your normal life, and they would create with that number a plan to pay your debts. That’s how IVA’s actually work, but with more professionalism and a system that controls that everyone is fulfilling it. To apply for an IVA online click here. How When you want to request an IVA, you will need a lawyer, an accountant, or a company that takes care of debts. All of them charge fees for this procedure, but they have to work through the whole process, so this is understandable. Once you request one, your Insolvency Practitioner (that’s the legal name for the responsible for your debts now, but you can still call them lawyers or accountants) takes care of the most important task: to make the arrangements between you and the creditors, until a plan comes out of which both parties can agree. Then, it goes to court to be approved, and once it happens, the plan simply begins. What’s next? Now it’s the moment for you to pay your debts. You are going to give the arranged money in a monthly basis to your chosen Insolvency Practitioner. His or her job now is to receive your payments every month (while making sure you pay every month on time), and distribute the money to the creditors. In most cases, there is more than one creditor, so it is the Insolvency Practitioner’s job to make sure the money is distributed correctly. Your only concern should be to pay every month. Each IVA lasts as long as you and your creditors agree (don’t worry, you’ll get tons of advices from your Insolvency Practitioner from the beginning to the end of the IVA). In most cases it lasts around 5 or 6 years. Who can get one? Not every debt is eligible for an IVA, such as not every situation. If the debt comes from a student loan, for example, you can’t request one. Neither if they are magistrates’ court fees or child support arrears. Most debts can be included, though, and as long as you have a monthly fixed income, then you’ll definitely get it.
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