What is Individual Voluntary Arrangement & It’s Benefits?
IVA also called Individual Voluntary Arrangement is a legal contract between debtors and their lenders, and should be supervised by an approved Insolvency Practitioner (IP). A contract permits you time to either pay lump sum or come to compromise regarding your debt.
Individual Voluntary Arrangement advice will assist you avoid insolvency and its strict penalties, also you will make agreeable repayments each month to your lenders who are lawfully prevented from harassing you with any further demands for cash. If you eligible for Individual Voluntary Arrangement, you will hire an individual debt consultants who will take you from beginning to end the whole procedure and make clear all factors to you.
Single Affordable Repayment
With this program, you will prevent from bankruptcy and its consequences. You will pay a single debt installment that is within your means and your other charges and interest will write off. Your lending companies will not harass you demanding payments, and a percentage of your outstanding arrears will be removed. All these advantages depend on you obeying and making the affordable installments terms of your Individual Voluntary Arrangement. If you do not pay debt installments, in that case your lenders may appeal for your insolvency and re-apply charges and interests.
Requirements of Reports for IVA
When you make a decision to explore a debt solution like Individual Voluntary Arrangement IVAplan, there is particular official procedure that you must have when you visit to talk with an IP. Understanding what paperwork you will require will make your life debt free, particularly throughout this stressful time of coping with your arrears. You will require a property assessment report that indicates how much houses in your local vicinity have been selling for. A report of your yearly mortgage or with whole amount of lease you have paid for time will be asked. Statements and letters from all of your lending companies you want to case in your Individual Voluntary Arrangement will represent how much you be indebted them, your latest back account statement and some other necessary documents.
You will give complete letter explaining what prelude to your current financial condition, how your debt raised up from lack of job, accident, illness loss of earnings etc. you must be extremely honest and straight forward, as this letter will act to your benefit in assisting convince your lending companies to agree to your repayment proposal.
Make Payments on Time
You are liable to pay the set monthly installments to Insolvency Practitioner, who will after that make sure that these amounts are distributed to all lenders until the successful end of the Individual Voluntary Arrangement IVA plan. This is in your personal interest to manage their repayments, as stop to pay will almost surely result in the stoppage of the Individual Voluntary Arrangement. A time when Individual Voluntary Arrangement is successfully ended, you will be considered free of debt. Any remaining dues after completion of set time period will be written off accordingly.