Finances : Who Are IVAs Appropriate For?
|
|
|
|
By: Melanie Taylor
Date Submitted: 2009-10-09 17:04:21 - Article Views: 12
|
|
If you are struggling with a high level of unsecured debt that you can't afford to repay within a reasonable period of time, then an IVA (Individual Voluntary Arrangement) may be appropriate for you.
An IVA is a legally binding agreement between you and your unsecured creditors. If you can commit to repaying a certain portion of your debt over the course of your IVA, your creditors will (if they accept the terms) agree to hold off on (or stop) any legal action against you - and to write off any outstanding debt once the IVA comes to a successful conclusion.
It is important to note that to be eligible for an IVA you must, in most cases, be able to commit to making regular reduced monthly payments for 5 years.
How does an IVA work?
- Before an IVA can begin, voting creditors accounting for at least 75% of your debt would have to agree to the terms set out by you and your Insolvency Practitioner (IP) in your IVA proposal.
- In most cases, you will make regular reduced monthly payments to your IP for 5 years (however, this may vary depending on the terms of the agreement and whether you miss any payments throughout its duration). Your creditors will each receive a portion of this money according to how much you owe each of them (this is known as a pro rata payment).
- IVAs are legally binding debt solutions, which means that once one begins, creditors can't change the terms of the agreement, or cancel it altogether - providing you stick to your side of the agreement.
- If you are a homeowner, you may be required to release some of the equity in your home half way through the final year of the IVA, so you can pay more towards your debts.
- When you make your final payment and the IVA comes to a successful conclusion, any outstanding unsecured debt will be written off.
- Please bear in mind, though, that entering an IVA will affect your credit rating for 6 years from the time it starts, which can make it harder and/or more expensive to obtain further credit during that time.
It is important that you contact a professional debt adviser before committing to any debt solution. They will be able to discuss your situation with you and help you consider any alternative options you may have. By rushing into a debt solution you may find yourself committed to something that you cant get out of. |
Author Resource Required for Reprint:
For more information and advice on an IVA head over to http://www.ivaforum.org.uk/
|
Article Source: Fully-Explained.com 
|
Tags:
IVA  |
|
|
Bookmark and Share
|
|
 Finances Category Rss Feed |
|
|
-
Adults across the north of Scotland are developing debt difficulties as a result of owning their first home, it has emerged.
Viewed: 9 Times.
Read More ...
-
A new countrywide consumer poll carried out by Lloyds TSB has indicated that concerns about food, fuel and energy costs are driving expectations of high inflation in the year to come.
Viewed: 9 Times.
Read More ...
-
If you are in midst of a financial crisis, bankruptcy is just one option. There are no set in stone rules when it comes to filing. Everyone's situation is different and must be analyzed on a case-by-case basis.
Viewed: 9 Times.
Read More ...
-
Everybody would like to pursue their dreams and goals in life without worrying about tomorrow or wondering how they're going to make ends meet. Living free of debt seems to be impossible for most of us.
Viewed: 9 Times.
Read More ...
-
There are plenty of help-self books on the shelves these days touting sure-fire methods for achieving great wealth. Books that assert a particular mindset will create the magic pathway to financial goals that seem elusive to so many.
Viewed: 9 Times.
Read More ...
|
|
| Melanie Taylor's Author Feed |
|
|
-
Getting out of debt isn't easy, but the right professional help can make a big difference. Debt professionals understand how debt 'works': they know which debts are for example, the highest priority.
Viewed: 9 Times.
Read More ...
-
In the current economic climate, it's more important than ever to use your money wisely and secure your financial future.
Viewed: 10 Times.
Read More ...
-
If you're struggling with debt, rest assured you're not alone. Whatever financial problems you're facing, you won't be the first.
Viewed: 10 Times.
Read More ...
-
An IVA is an agreement with your creditors in which you will repay a set percentage of your debts, based on how much you can afford, after which the remaining debt will be written off.
Viewed: 10 Times.
Read More ...
-
If you are looking to clear your debts, there are a number of debt solutions that may be able to help. Each one is designed to aid people in different situations and with different levels of debt.
Viewed: 11 Times.
Read More ...
|
|
Article use is considered your agreement of our Terms of Service.
This work is licensed under a
Creative Commons Attribution-No Derivative Works 3.0 United States License.
Thanks for visiting Fully-Explained.com
Copyright © 2009 - 2010 Fully-Explained.com
|
|
|
|
|
| |
|
| |
|
Print
