Individual Voluntary Arrangement Debt UK
With rising commodities, fuel and utility costs constantly on the increase and debt never seeming to be on the decrease, monthly expenditure is becoming higher than monthly income. This is making it hard for people to keep up with repayments to creditors at the rates you currently are. If your finances have already become out of control and have reached in to the tens of thousands then you may feel that you will need to turn to bankruptcy as a way out. There is a better way to save you taking that step and help you regain control of your money. Search for an Individual Voluntary Arrangement Debt UK specialist to give you advice.
Individual Voluntary Arrangement Debt UK Specialists
An Individual Voluntary Arrangement or IVA is a tool that can save you hundreds of pounds per month in your monthly budget by reducing your debts to creditors in to one monthly sum.
Finding an expert Individual Voluntary Arrangement Debt UK firm to work on your behalf is essential as an IVA is a legal contract and therefore must be put in place by a licensed practitioner. It is also beneficial to you, as the firm working for you will take care of every step of the arrangement and as an IVA is put in place generally over a five year term you would need to be comfortable with them.
Avoiding Contact with Creditors
The company you choose to put the IVA in place will take care of all contact with creditors meaning you don`t have to; they also reply to letters and take phone calls on your behalf. They will be known as the supervisor of the IVA and forward all payments, divided between creditors each month as you pay in to the arrangement.
The supervisor will take a fee for the service they provide, this figure in no way effects the payment you have agreed to pay creditors, they also won`t ask for any upfront fees. The way in which they are paid is to deduct their fee from your repayment figure before the money is forwarded to creditors.
Individual Voluntary Arrangement Requirements
There are certain requirements that must be met before the IVA can be put in place, your Individual Voluntary Arrangement Debt UK specialist can inform you of these in depth before you begin your contract. Here are a few of the necessary needs:
- You must have debts of over £15,000, be able to make a monthly repayment of at least £200 and have a regular income.
- For the IVA to go ahead is required that three quarters of your creditors agree to the terms. This will be decided at an arranged meeting between the supervisor and creditors.
- You must not acquire any more debt whilst paying in to an IVA; this would break the terms of the agreement.
- Payments must always be made; missing payments can cause the IVA to fail and may lead to bankruptcy. If you are struggling to pay contact your supervisor immediately.