IVA Debt Relief Plans – What You Need to Know
An IVA debt relief plan consists of making simple monthly payments to your creditors, freezing interest on outstanding debts and preventing creditors from taking further action. It will also protect you from bailiffs and court action. Once you’ve signed up for an IVA, your monthly payments will be much easier to manage and keep up with.
IVA debt relief plans are not suitable for everyone, but for many people they can get the debt relief they need. An IVA debt relief plan is a much better option than bankruptcy. However, some occupations will not allow you to work if you have declared bankruptcy. This makes it essential to find a suitable debt relief plan before you file for bankruptcy.
A debt management plan consists of an agreement between you and your insolvency practitioner. Your insolvency practitioner will communicate with your creditors and try to get the IVA accepted. The practitioner will conduct periodic reviews and respond to queries from creditors. When the process is complete, the insolvency practitioner will issue a completion certificate.
A monthly payment for an IVA debt relief plan is determined through an affordability calculation. It is calculated by subtracting your household bills from your total income. This will leave you with the amount you can afford to pay each month. You’ll also be given expenditure allowances to cover some types of spending. During the IVA debt relief plan, the creditors won’t be able to take any action if you fail to make your monthly payment on time.
An IVA repayment plan normally lasts 5 years, but it’s possible to extend the term. Generally, repayment terms are extended to 6 years for homeowners who have equity in their property. The repayment term is also extended if you’ve missed a payment or have missed some disclosures. It’s also possible to extend the IVA for an additional 12 months.
When you apply for an IVA, your IP will contact your creditors to get their consent. They must approve your proposed repayment plan. It’s important to communicate with your IP as accurately as possible, so that you can get the best possible outcome. Your IP will draw up a proposal that will fit your needs and keep your creditors happy.
An IVA debt relief plan is a legal and flexible way to negotiate with your creditors. This method will allow you to save your home and still make reasonable monthly payments to your creditors. If the creditors approve your proposal, your IVA debt relief plan will end up paying off your debt and restoring your credit rating.
If you choose to use an IVA, you must be aware that the agreement will affect your credit rating and remain on your credit file. Your credit rating is a three-digit number that helps lenders decide if they want to lend you money. The details of an IVA will remain on your credit file for up to six years. This can make it difficult to get loans in the future.
IVA Debt Relief Plans – What You Need to Know was first seen on Apply for an IVA