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Is There Any Chance One Can Prevent Bankruptcy With The Help Of IVA?

Todays Date: December 13, 2018

An IVA (Individual Voluntary Arrangement) can be defined as an officially binding settlement between yourself, and your creditors. An IVA can be taken when there is no other option left for you to pay off your debts.

An IVA gives a debtor benefit of getting protection from the creditors in opposition to any recovery action in order to take money from them. The government during 1986 as part of the Insolvency Act introduced IVA. This act offered safety and assistance to individuals who were under serious debts.

With the assistance of a licensed insolvency practitioner, you figure out what amount of debt you can pragmatically come up with to pay back over a certain period, which is often 3 to 5 years. If three-quarters of your creditors concur, all your debts, and the future interest on them will be frozen at the time that the IVA proposal is agreed. IVA functions by providing you protection from you creditors through an interim order. Your creditors are thus stopped from legally recovering money out of you.

It will not be wrong to say, that an IVA is an alternative to bankruptcy. If your creditors are flexible, and ready to listen to you, only then you can launch an IVA. It is expected that the creditors are paid their money within the period suggested. There will also be some conditions attached with the agreement, which allows the creditors to take some actions against you if you fail to pay the amount in the agreed time. You must not panic, and evaluate the available options.

There is a particular procedure that needs following. The creditors decide on the offer that the debtor plans at the creditors meeting. In most of the cases, if more than 75% of the creditors vote in support of the offered suggestion the IVA will be applied. Creditors contain the right to make changes to the given proposal if they are willing to; however, the debtor should try his/her best not to have those alterations imposed on them. By law debtors do not need to attend this meeting of creditors; however, it is better to attend the meeting, so that they will get an idea of ways to deal with the creditors at later stages.

By using an IVA, the debtor will still be able to keep their homes if they maintain their repayments; but bankruptcy may take them to severe consequences like bank account closure, loss of potential assets, etc.

If you are availing an IVA, usually a certain amount of the debt you owe them may be forgone by most of the creditors, and in some cases, at the end of the agreed period your debts may be written off, provided you keep up with the allocated monthly IVA payments, as the contract states.

It is sure that as long as you are confident, you can maintain the regular monthly payment that has been agreed upon, an IVA could turn out to be a great solution for you, and you could be debt free in 5 years or less.
You can take a professional’s advice and iva help for your debt now.

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