What is an IVA?
An IVA is a debt-management scheme. It involves freezing interest on any outstanding debt and preventing your creditors from taking further action against you. It can help you to keep your home. It is a legally binding agreement that can help you get your creditors off your back in a short space of time.
Most IVA’s are structured around affordable monthly repayments over 60 months. These are determined by taking into account household bills and reasonable expenses, including any priority commitments. Once you have completed the assessment, the amount of the monthly repayment cannot be changed. However, the ongoing amount depends on your individual circumstances. If you are employed, you should check your contract.
Once approved, an IVA is a legal debt management plan that will help you get on track financially. If your debts are high and you are unable to make regular payments, an IVA will allow you to avoid further creditor action. The IVA will enable you to make affordable payments to your creditors over a long period of time. Your creditors will be prevented from adding further interest and charges to your account, which means you’ll never get into deeper debt.
The IVA adviser will draw up a proposal that explains your repayment plan to your creditors. This proposal should be honest and straightforward. It will tell your creditors how much you can afford to pay each month, and will also include any assets you have. Your IP will present the proposal to your creditors. During this meeting, they can ask you to clarify any details or make amendments if necessary.
An IVA can help you avoid bankruptcy altogether. It can protect your home, vehicle, and employment status. It also protects you from creditors using the courts. It also means that your creditors won’t be able to recover the money they lent to you. It’s not always the best option for everyone.
While an IVA can help you get your debt under control, it’s important to remember to keep up with your repayments. Failing to do so could force your creditors to declare you bankrupt. Another important aspect of an IVA is that you have to be honest with your Insolvency Practitioner. Failure to tell your Insolvency Practitioner about your circumstances could result in a negative effect on your credit rating.
Most jobs won’t be affected by an IVA, but there are some exceptions. For example, if you are self-employed, you may still be able to continue working. An IVA can also help you rebuild your credit rating. This will help you get a fresh start on your finances.
In addition to protecting your home, an IVA can help you offer your creditors affordable monthly repayments for a certain amount of time. If you follow the plan and keep your payments on track, you’ll be able to avoid bankruptcy altogether. But you must cooperate with the supervisor. You must make yourself available for periodic reviews of your IVA. At these reviews, you must also provide all necessary documents.
What is an IVA? was first seen on Debt Worries