Individual Voluntary Arrangement Questions

Individual Voluntary Arrangement Questions

If debts are getting the better of you and you are struggling with making monthly credit card and loan repayments on time it can be a really depressing situation. It is advisable to seek professional help with your money matters; there are dozens of companies both in the local community and on the internet that are willing to help you. If your debts are in the tens of thousands many people assume that bankruptcy is the only option, this is not the case as you could be eligible for an Individual Voluntary Arrangement (IVA).

Be sure to ask Individual Voluntary Arrangement questions to your debt advisor when talking through you finances. They can talk you through the ins and outs of IVA`s. Listed below is some answers to some of the most popular Individual Voluntary Arrangement questions:

What Is An IVA?

An IVA is an agreement between you and your creditors for you to be able to repay your debts in one monthly sum. This sum is significantly reduced on your current repayments and is based around what you can afford after all of your monthly living costs are deducted.

Am I Eligible For An IVA?

One of the first Individual Voluntary Arrangement questions you should ask is about eligibility. To qualify for an IVA you must have debts of £15,000 or above. You also must be able to prove you are able to make a payment to creditors of at least £200 per month and have a regular income.

How Is An IVA Set Up?

An IVA is a legal contract between you and your creditors, for this reason it must be put in place by a licensed practitioner. Your representative will work with you to come up with an affordable sum which will be offered, at a meeting to your creditors. At the meeting is required that 75% of creditors agree to the IVA.

How Long Will The IVA Last?

Once put in place an IVA will last between 60 and 72 months, most IVA`s will however will be set over 60 months (5 years).

When talking to an IVA advisor, be sure to have a list of Individual Voluntary Arrangement questions with you to put to them. As with any debt solution there are a lot of permutations with IVA`s and it is important that you know about them. Here are a few of the advantages and disadvantages:

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