All about IVA's

All about IVA's

All about IVA's

With the state of the financial market at present, the nation seems to be in more debt than ever before it is a difficult situation that many are struggling to find a solution or a way out. If this is a situation you have found yourself to be in, then maybe an individual voluntary agreement is what you need.

An Individual Voluntary Agreement is otherwise known as an IVA - is a contract that is legally binding between the lendor and the borrower. The agreement is supervised by the licensed insolvency practitioner. With the reduced payments the IVA provides, it can help the debtor to solve his or her financial problems.

The debtor will need to provide the insolvency practitioner with their monthly earnings and outgoings so that he or she can work out the amount the debtor can afford to pay. In almost all cases the creditor will have to compromise the amount of money that is owed to them. It can help relieve the stress felt by the debtor and is a much better alternative to bankruptcy.

Once an amount has been agreed between the creditor and the debtor both parties will have to sign a contract. As soon as the contract has been signed by both parties it cannot be changed. The creditor is not aloud to chase you for money once the agreement is signed.

There are certain requirements needed for people to be eligible for an IVA for instance:- you would need to have unsecured debts a minimum of ?15,000 the insolvency practioner will also require proof that you are unable to pay back your outstanding debt. IVA's can be taken out over a period of 3-5 years depending on the individuals circumstances.

Not everyone is entitled to get an IVA. To qualify for an IVA you would need to be in long standing full time employment, you will need to prove that you have enough money each month to cover all of your living expenses. People should not look at getting an IVA unless it is their last and only option, although they are ideal for people on the brink of bankruptcy, you must take into consideration that it will have an affect on your credit rating and finances for a long time.

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