The IVA, or the Individual Voluntary Agreement, is a great solution for people who have debt problems. This is because it is especially made for those people with debts. This is a formal agreement between the person and the creditors, to settle with a proposal that will be the basis when it comes to the arrangement. This is helpful to those people with debt because it will help people to be debt free, by the end of the term. The term usually lasts up to 5 or 6 years, depending on the arrangement made through the proposal. But before you have to know about the details enclosed with the formal agreement, you still need to be qualified in order to get an IVA. The primary qualification that the IVA needs is for the person to be a resident of the following countries: England, Northern Ireland, and Wales. Scotland also has a similar agreement called the protective trust deed. For other countries not listed above, better ask the experts when it comes to insolvencies in your own respective countries.
Before being able to get an IVA, you need to know first if it would be the formal agreement suitable for you. Although you may have debt problems, you still need to consult an expert first if it is the best solution for you when it comes to your debt. There may be other solutions for you, especially when you do not qualify with the minimum amount of debt needed so that you can get an IVA. There are lots of debt charities in the United Kingdom which offer financial advice when it comes to getting an IVA. Online as well, there are debt services that you can use in order to assess if you really need an IVA. Check out IVAplan to get an expert advice.
When you have assessed through an expert that you really need to have an IVA, you can now apply for it. When applying for one, you should really be serious because it should not be taken carelessly. You need to get an insolvency practitioner (IP) who will be the key person in the process. The IP will be the one to let you know about the details regarding the proposal. Also, the IP will be the one you talk to about your current financial situation. You need to tell the IP about who your creditors are, what your assets, debts, and other financial information that he needs to know when drafting a proposal. Also, the IP will be the one to contact your creditors.
Once that the proposal is agreed by the creditors, that will signal that you can now proceed with the monthly repayments. The IVA will be at your advantage so the monthly repayments should be affordable to you. After everything is settled, then you can start with the payments that you should not fail to do so. If in case you fail to pay your monthly repayments, the IP has the right to cancel out the agreement and it may lead you to bankruptcy. You need to really take your monthly repayments seriously so that you can end up having no debt at all. After the contribution period, any remaining debt that you have will be written off by the creditors. Then you can now say that you are finally debt free so you can already start a new life without having to think of a debt that you should pay.
When getting an IVA, you should not only know about the advantages, but also the disadvantages. These are important to know so that you can gauge what the risks are that you might have when you choose to get an IVA. It is as important to know so that you weigh in if you really need an IVA. Applying for an IVA may be a tedious task but with the help of an IP, you can learn the steps into getting one. Just be sure that you know the other factors needed when wanting to get an IP. To help you decide if this is the right thing for you, check out IVAPlan for help regarding IVA.