Individual Voluntary Arrangement Management
Debt problems can hit any person or family at any time, when you become bogged down in debt it gets hard to manage putting food on the table and paying gas and electric bills; every spare penny seems to go on paying back creditors. Seeking out advice from a debt management firm could help find a solution to your problems, if you're in a position to qualify for one, then an Individual Voluntary Arrangement can help ease those money woes.
What Are IVA's Meant For?
Individual Voluntary Arrangements (IVA) is designed for people who have debts exceeding £15,000 to three or more creditors. With the help and guidance of a good IVA management company you have one put in place. You will need to show you can pay at least £200 per month in repayments to creditors and that you are earning a regular income to be eligible for the scheme.
What does an Individual Voluntary Arrangement Management Firm provide?
IVA`s are legally binding contracts and must be set up and supervised by a qualified Licensed Insolvency Practitioner, this makes seeking advice from a reputable debt management company imperative.
Individual Voluntary Arrangement management firms can provide you with help and support as-well as deal with all aspects of your IVA. Once it has been determined that you qualify then you will be required to provide a breakdown of your incomings and outgoings, they can help you to complete these forms. Once submitted, a suitable figure which you can afford to offer per month in one lump sum will be found. Your professional representative will then call a meeting of your creditors to propose this monthly payment, you do not have to attend this meeting nor do you have to any contact with your creditors during the time of the IVA. It is required that 75% of your creditors at the meeting agree to the terms of the IVA for it to be able to go ahead.
An IVA usually lasts over a five year term, during this stage your Individual Voluntary Arrangement management firm will act as what is known as a Nominee. Once the IVA has been agreed to by creditors your representative will become Supervisor. A fee will be required to be paid to the firm working on your behalf; on most occasions this fee is taken from what creditors receive meaning no extra money is required from you. These fees will fund them in their running and managing of the IVA over the five year period.
After the IVA has ended whatever ever unsecured debt still remains is automatically written off, this could eradicate thousands of pounds worth of debt and amount to up to 60% of your total debt.
What an Individual Voluntary Management Firm does not provide
Everything to do with IVA`s is undertaken by your chosen Individual Voluntary Arrangement management firm.
What they cannot do is make the repayments on your behalf; this must be done by you. Falling behind or missing payments can result in a court order from your creditors.