Individual Voluntary Arrangement Company
More and more people are finding themselves struggling with money, commodities and utility bill are rising across the board meaning paying money towards credit card and bank loans becomes a real struggle. Eventually payments to credit companies are missed and people find it hard to catch up on repayments, with late fees and other charges being added on to what you already owe them.
People with larger debts should seek advice from a debt management company about the possibility of an Individual Voluntary Arrangement known as an IVA. This could help you regain control of your finances.
What an IVA Is and How to Get One
An individual voluntary agreement is a legal contract between you and your creditors to pay a reduced monthly sum that better suits your financial needs. The term of an IVA usually extends over a five year period. After the IVA has ended, however much unsecured debt is remaining is written off as settled. An IVA does stay on your credit records for the duration of the term.
As an IVA is a legally binding contract it must be put in place by a fully qualified licensed practitioner. If you decide to that it is for you it`s best to find a specialist Individual Voluntary Arrangement company to proceed with an IVA.
What's needed to Qualify for an IVA?
To qualify for an IVA you will need to show that you debts amounting to over £15,000 and have three or more creditors to which it is owed. You also need to have a regular income and money available for repayments (at least £200). Your chosen company will decide if you are eligible.
Choosing the right individual voluntary arrangement company to act on your behalf is extremely important as they oversee and manage the full term of the IVA; therefore it is essential that you have a good relationship with them. Look to make they hold the relevant qualifications; also customer feedback can give you a sense of their quality. Never pay any Individual Voluntary Arrangement company an upfront fee if you are only looking for help and advice, this is available free from many sources.
What Can Agents Do?
The individual voluntary arrangement company you have acting as your agent will work through how much you can afford to offer as repayment, they will then call a meeting with your creditors and submit this offer to them. It is required that three quarters of creditors agree with the terms for the IVA to get up and running. Your chosen company agent will become known as the supervisor dealing with all matters of the IVA from dividing payments to issue to creditors to conducting all meetings with them. This means that during the term you will not have to interact with your creditors nor will you receive any more letters or phone calls regarding the money you owe.
It is important that you keep up with payments of the IVA or risk being taken to court; your individual voluntary arrangement company will talk you through all the ins and outs necessary.