To be eligible for an IVA you will have to show that you are insolvent. This means that you have neither the monthly Disposable Income (total income less reasonable living costs) to make your contractual payments or the assets (i.e equity in your home etc...) to cover the debt. There are other options in dealing with debt difficulty including bankruptcy or a informal plan. Post some more details of your debt and disposable income and we can assist you further. In the mean time please find some details on the IVA option below.
INDIVIDUAL VOLUNTARY ARRANGEMENT (IVA)
WHAT IS AN IVA?
An IVA or Individual Voluntary Arrangement is a legally binding agreement with Creditors. It allows someone who is in financial difficulty to make a formal proposal to settle his/her debts within a reasonable and fixed period of time - normally 5 years. The repayment proposal is based on what you can afford to pay. After the agreed payment period, any outstanding debt will be legally written off by your creditors.
An IVA will overcome the disadvantages normally associated with the informal Debt Repayment Plan. Particularly, the IVA allows you to be debt free in 5 years. A single affordable payment is made each month for 60 months and under the law, your creditors must freeze all further interest or charges. Once the final payment is made, Creditors agree to legally write off any outstanding debt. As such, the IVA offers a solution with a specific end date so you know exactly where you stand and when your debts will be over for good!
Advantages of an IVA:
Single affordable monthly payment.
Fixed repayment period (normally no more than 60 mths) with a specific end date giving Light at the End of the Tunne.
Creditors must freeze all further interest and charges.
Once the final payment is made, any outstanding debt is legally written off by the Creditors.
Creditors are legally bound to the agreement. They can not go back on the agreement and demand increased payments.
Once the final payment is made, any outstanding debt is legally written off by the Creditors.
Creditors are legally bound to the agreement. They can not go back on the agreement and demand increased payments.
Current and Future CCJ’s overturned.
Protection from court action by creditors.
The IVA is discreet and can be used by professionals, forces personnel and the police without damaging career prospects.
Disadvantages of an IVA
Although the advantages of an IVA are significant, undertaking an IVA is a serious matter. As such, there are some things that you must bear in mind.
The IVA will be recorded on your credit file. This means that you will not be able to take further unsecured borrowing for the period of the IVA.
Once the IVA is completed (normally after 5 years), you can borrow again. However, it may take some time for your credit rating to repair.
If you are a home owner, during the course of the IVA you may have to release available equity from your property to increase the overall settlement offer to your creditors.
Best Regards
Oliver
Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at:
www.thomascharles.com/about_us.asp
