Insolvency Individual Voluntary Arrangement
Due to the current economic climate and everyday necessities ever on the increase some of us start to come to under financial stress. Juggling food expenses, running a vehicle, utility bills, credit cards, store cards and loans all in the same month, every month can become overwhelming leaving us falling victim of insolvency. There are some schemes out that can help to ease financial pressure and enable you to get straightened out with your money.
If you have become a victim of debt then insolvency individual voluntary arrangement (IVA) could be the answer. You should first seek out professional debt advice to see if you can qualify for insolvency individual voluntary arrangement. You would be required to show that you have debts of over £15,000 owed to three or more creditors and that you are currently receiving a regular income with a disposable amount to put towards payments. If you meet these terms then you can start to work out a plan to suit your needs.
Getting an IVA
There are many insolvency companies that can help you with an IVA. The internet is an excellent resource to find a firm that suits you.
After it has been determined that you fit the match for an IVA, your chosen insolvency company will discuss your financial situation and fill in an Income and expenditure form and work out how much you can afford to offer creditors in one monthly payment. This figure will be greatly reduced on the numbers you are currently paying out. As an IVA is a legal contract the insolvency individual voluntary arrangement firm you are using will need to be licensed professionals to carry out the plan.
Agreement for IVA's
Once proposed, the IVA must be agreed to by three quarters of your creditors. They usually do vote in favour as other insolvency debt solutions result in them possibly receiving no money at all. With an Individual Voluntary Arrangement your creditors are guaranteed to receive some form of payment, in some cases maybe all of their money back. It will then be put in place that you be the figure agreed into the IVA each month of the plan, this can be either 60 months or 72 months although it is generally the former. As long as payments are met each month you will not need to have any form of contact from any of your creditors and after the term of the IVA has ended the remaining unsecured debt will be squashed potentially saving you thousands of pounds on your total debt figure. It is important that you do not miss all fall behind on your IVA payments as this can result in a court order being filed for by the credit companies.
In Conclusion
The insolvency individual voluntary arrangement firm acting on your behalf will be known as the Supervisor during the period of the IVA. They will oversee the whole operation and make sure creditors are paid on time each month. There fee will be deducted from what the creditors receive.