Individual Voluntary Arrangements

An Individual Voluntary Arrangement (IVA) is a formal agreement between you and your (lenders) creditors. It is generally appropriate for people who are unable to make their monthly repayments in full but who do have some money to give to their creditors each month. An IVA proposal sets out how you are going to repay your creditors, usually over a period of five to six years. The IVA can also take the form of a lump sum raised from the sale of an asset such as property or an insurance policy or a contribution from friends or family.
The process
IVAs can only be put together by an Insolvency Practitioner (IP) - most advice companies will be able to put you in contact with one but always ask about their fees and whether you need to pay anything up front. The firm you choose will need to ask you a number of questions about your financial situation in order to calculate how much you can realistically pay your creditors each month. They will then multiply this amount by 60 or 72 months. If it seems that over this period you could pay back a reasonable amount of your total debt, it may be taken that an IVA is a suitable option for you.
Once proposals for repayment have been drawn up, an Interim Order may be applied for. Whilst the Interim Order is in place, your creditors cannot take action against you without asking the Court. A meeting date will be arranged and full proposals sent to all creditors who will then have the opportunity to vote on them. If enough of your creditors (75% in value) agree, the IVA will become legally binding. You then make agreed payments for a number of years (usually five or six) and providing you have completed your Arrangement as agreed and once the final payment is made, your liabilities to your creditors are discharged in full.
IPs will conduct regular reviews of your arrangement and try to help you to complete it successfully.
Many Insolvency Practitioners will charge you an upfront fee for putting together the Arrangement. However, others will not.


The Advantages of an Individual Voluntary Arrangement
You may only pay back a percentage of your debts and be free from making further payments after completion of the arrangement.You only have to make one monthly payment.The Arrangement is legally binding so that your creditors cannot change their minds once they have agreed.Once the IVA is in place your creditors cannot bring any other action against you as long as you maintain your reduced monthly payment.

The Disadvantages of an Individual Voluntary Arrangements
IVAs are only suitable if you have the means of making your creditors a reasonable offer of repayment. Your creditors have the opportunity to agree or disagree with the arrangement through a vote. However, most Insolvency Practitioners will not suggest this course of action to you unless they think there is a good chance your creditors will accept.If you do not make the payments to the IVA it is likely that the Arrangement will fail and your creditors will be able to take other action against you.



Credit Secrets Bible ! The #1 Credit Course In America Click Here!

Everything You Know Is Wrong! About Being Debt Free That Is!! And It Will Keep You In Debt The Rest Of Your Life! Click Here!

Credit Repair Secrets Revealed! Credit Repair Is A Hot Topic Click Here!

Guaranteed Bad Credit Financing. Receive A Loan Or Credit Card Even With Bankruptcy!
Click Here!

Living On A Dime - Financial Independence Through Better Life Choices. Publisher Of E-books About Paying Off Debt, Saving Money, Frugal Cooking And Homemaking. Click Here!

Eliminate Debt Fast Without Bankruptcy Or Debt Consolidation. Click Here To Learn The Amazing Secrets Of How I Got Rid Of $63,000 Of Debt In Only 4 Months Without Filing Bankruptcy Or Using Any Type Of Debt Consolidation Service! Click Here!

My Miracle Loans Learn How To Easily Borrow Up To $1 Million Cash In Less Than 7 Days All With No Credit Check, No Collateral, No Proof Of Income, And No Interest Fees! Click Here!

Bad Credit Personal Loan Source. Bad Credit Personal Loans Regardless Of Bad Credit - Up To $25,000. Click Here!