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Individual voluntary arrangements are for those who cannot find debt relief from common debt management measures but also desire to avoid extreme measures. It is a good alternative for bankruptcy. Visiting stepchange.org will help one to know the privileges, benefits and responsibilities attributed to the different arrangements.
This plan for repaying debts protects a debtor from repossession of assets to pay for unsecured debts. The protection will last for a specified period after which repayments of debts should be over. A contract for repaying obligations can only be enforced arrangements if it contains signatures of parties involved. Some of these tools such as iva calculator will come in handy during the process of getting rid of debt.
What is an IVA?
This repayment plan is arrived between a debtor and creditors. It serves the sole purpose of facilitating relief from debt. It is a legal contract; therefore, the terms are binding to creditors involved and the debtor who is required to settle debts. This plan relates to the payment of unsecured debts. The rights and privileges of secured creditors is not be affected by this arrangement.
This debt arrangement is only available to citizens of England and Wales. Insolvency Act 1986 lays down IVA steps that include creditors meeting where a vote is taken and enforcement of the arrangement. After more than seventy-five percent of creditors agree to the terms suggested, the different parties sign the necessary papers.
A licensed insolvency practitioner deals with administration matters. This practitioner may also be the professional who drafts a formal repayment proposal that stipulates time it will take a debtor to settle all obligations among other details. Debtor and his advisers can also draft the proposal and present it to creditors who will reject it, suggest modifications or accept it. Insolvent practitioner will charge the debtor for the services offered. Therefore, the total cost a debtor will incur by choosing this voluntary debt settlement arrangement will be cost of the service added to cost of repayment of debts.
It is the duty of a debtor to obtain independent advice on whether this process is the best alternative in light of individual circumstances. Many professionals offer valuable advice at a fee. To obtain free information that would aid the decision making process, one should visit sites such as stepchange.org.
People who need this arrangement
Any person who is deeply engrossed in debt will find this plan to be very useful. An individual who wishes to avoid bankruptcy can opt for this alternative. Insolvent individuals burdened by business and non-business debts will find much needed relief by applying for individual voluntary arrangement.
This option is much better than filing for bankruptcy because it offers protection for assets while a bankruptcy filing will not prevent creditors from repossessing someone's assets.
Reasons to get an IVA from IVAOnline.co.uk
The main reason a person should consider contacting ivaonline.co.uk, to apply for an iva, is to protect precious assets such as high value car or a treasured house from being repossessed by creditors. A person, who wants a flexible debt payment plan, should opt for this kind of arrangement. Professionals found at ivaonline.co.uk will access a person's debt situation, income and capital and subsequently come up with a proposal that will protect all major assets and will not jeopardize necessary spending needed for good conduct of life.
There are many options for settling debt and avoiding bankruptcy. It is advisable to obtain credible advice from a consultant. There are charity organizations such as stepchange.org that offer much needed debt advice, free of charge.