Britain has a major problem with debt as a result of millions of individuals finding themselves struggling to pay off credit cards and loans with balances that total thousands of pounds and many are looking for viable solutions as a result. An IVA can indeed help individuals to get back on track, but before you consider an IVA as an option, you first have to know what one is!
IVA stands for Individual Voluntary Agreement. It provides a viable alternative to bankruptcy and is therefore for those individuals that really cannot afford to pay off existing debts any longer. An IVA can help because it is a proposal that is sent to all of an individual’s creditors offering a settlement over a period of five years or so. After that period, the debt is settled. However, there are certain criteria that your proposal has to meet before coming in to being!
An IVA proposal has to be accepted by at least 75% of your creditors in order for it to apply to your debts. If 75% of them do accept it then all creditors have to abide by it. However, if not, you should attempt to amend it until it does become accepted by 75%. An insolvency practitioner will draw up the agreement for you and do any necessary alterations based on the affordability of payments. If you have reached the stage when an IVA is the last resort before bankruptcy then you may
want to do all you possibly can to get the agreement accepted and rid yourself of your debts once and for all!
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