IVA stands for Individual Voluntary Arrangement, which is a formal choice for individuals, who wishing to avoid bankruptcy. Individual Voluntary Arrangement is best for those people, who think that you may possibly be bankrupt. This type of agreement can be made between you and your creditors at particular rate of interest. In this agreement, lower monthly payments will be set in such a way that it makes you free within five years. The agreement was established in the year 1986 through the Insolvency Act as an alternative to bankruptcy.
A company who is specializing in insolvency cases can able to make IVA. If you are accepting this agreement, then your credit record or rating doesn’t create as bankruptcy. Very firstly, you have to decide that whether you are appropriate for Individual Voluntary Arrangement or not as various debt management products are set up as you’re your debt. After that you have to check eligibility for this formal agreement. This eligibility depends on assets, employment status, number of creditors, types of debt, and size of debt. You can liquidate your assets in order to pay down your debt.
If you have highly valuable assets then you are not able to go through IVA. If you want to eligible for this agreement, then you should be employed with regular income. Various debts such as credit cards, store cards, catalogues and overdrafts, and other unsecured loans are to be included in this agreement. It is compulsory for you to keep at least fifteen thousand pounds worth of unsecured debt, if you have to go through voluntary arrangement. You have to keep touch with an insolvency group for an approval of agreement. It is advisable for you to assess how much debt you have and monthly amount of payment for the next five years, etc.
Article Source: http://www.compensationsecrets.co.uk/
Rate This Article |
Add Comments |
Send To Friends
