'IVA' is the shortened form for Individual Voluntary Arrangements. If you have a massive amount of debt that you have to repay and the people you owe are bullying you to repay or go to court, then there are two options available to you. You can either submit an application for insolvency, or apply for IVA. Declaring insolvency can be very stressful and the creditors will take over your assets and sell them. This would result in you losing your home, car, and any other assets that you have. You could virtually end up on the streets.
If you submit an application for an IVA, this is how it will go: If your IVA application is approved, the company through which you apply for an IVA will send an application to be filled out and returned to them. After this, they will summon you for a meeting and review the form with you. If they think that your debts can be repaid without you having to sell your assets through a debt repayment program they will apply for processing your IVA application.
After the IVA application is accepted, a meeting of all the creditors will be called. This will happen in about 2 to 3 weeks time after acceptance of your application. In the meeting, the creditors will have to agree to the repayment schedule. If 75% vote in favour of accepting the terms and conditions of the IVA, the others will be bound to accept them.
Now after the acceptance, the business or individual who has negotiated the agreement will be the guarantor of the agreement. So, in place of making many differing payments to all the creditors, there is a single payment that will be paid every month.
The advantages of applying for an IVA is that it stops your assets from being sold or taken away from you if you are a partner in a company or a sole proprietor or a working person, you can carry on with your work without any impediment. Also, you are free of all the creditors' threats and visits. Hopefully, at the conclusion of the term you will have cleared your debts and retained your assets.
An IVA is a preferable solution as compared to going bankrupt or playing a balancing act between creditors. One more benefit, and perhaps the largest, is that the increase in repayment amounts stops. This means that no more interest is added towards your payments. In a few cases, a good IVA handling company might be able to get your debts reduced. You may also be able to apply for a new mortgage while repaying an IVA. Also, the biggest advantage is that you will not lose your home or any other assets.
If your earnings increase greatly, the IVA may renegotiate with the creditors and get the repayment schedule cut down, and in case it reduces it may get extended. So, no matter which way your salary fluctuates your debts will remain the same.
There are definite advantages to getting an IVA, especially if one has accumulated a lot of debt and has creditors harassing them. The first advantage being that you don't have to stop your business, secondly you don't lose anything, and thirdly there is just one monthly payment that is to be made. Furthermore, in a few years you will be free of all your debts.
If you submit an application for an IVA, this is how it will go: If your IVA application is approved, the company through which you apply for an IVA will send an application to be filled out and returned to them. After this, they will summon you for a meeting and review the form with you. If they think that your debts can be repaid without you having to sell your assets through a debt repayment program they will apply for processing your IVA application.
After the IVA application is accepted, a meeting of all the creditors will be called. This will happen in about 2 to 3 weeks time after acceptance of your application. In the meeting, the creditors will have to agree to the repayment schedule. If 75% vote in favour of accepting the terms and conditions of the IVA, the others will be bound to accept them.
Now after the acceptance, the business or individual who has negotiated the agreement will be the guarantor of the agreement. So, in place of making many differing payments to all the creditors, there is a single payment that will be paid every month.
The advantages of applying for an IVA is that it stops your assets from being sold or taken away from you if you are a partner in a company or a sole proprietor or a working person, you can carry on with your work without any impediment. Also, you are free of all the creditors' threats and visits. Hopefully, at the conclusion of the term you will have cleared your debts and retained your assets.
An IVA is a preferable solution as compared to going bankrupt or playing a balancing act between creditors. One more benefit, and perhaps the largest, is that the increase in repayment amounts stops. This means that no more interest is added towards your payments. In a few cases, a good IVA handling company might be able to get your debts reduced. You may also be able to apply for a new mortgage while repaying an IVA. Also, the biggest advantage is that you will not lose your home or any other assets.
If your earnings increase greatly, the IVA may renegotiate with the creditors and get the repayment schedule cut down, and in case it reduces it may get extended. So, no matter which way your salary fluctuates your debts will remain the same.
There are definite advantages to getting an IVA, especially if one has accumulated a lot of debt and has creditors harassing them. The first advantage being that you don't have to stop your business, secondly you don't lose anything, and thirdly there is just one monthly payment that is to be made. Furthermore, in a few years you will be free of all your debts.
About the Author:
Applying for an iva is an important step and one you should not make alone. There is no shortage of debt professionals available to give you advice. Another important thing to consider is getting advice from a reputable source. Problem debt can be a source of a huge amount of debt, but help is available and the worst thing to do is nothing.
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