People who are in debt are curious about what IVA is. IVA stands for Individual Voluntary Arrangement. It is a solution to those people who are in debt. However, not all people can qualify for it. One needs to fit the qualifications set so that you can get an IVA. To know if you can qualify for an IVA, go to IVAplans.co.uk and check by inputting your total debt and your monthly income. However, even if you qualify, there might still be a chance that an IVA might not get approved; if the creditors think that the proposal does not benefit them or even if there is 1 creditor who does not approve of it. Most of the time, it gets approved depending on the proposal that is drafted by a licensed and qualified Insolvency Practitioner (IP). You need to help out the IP by providing all the accurate and needed details to be able to draft a proposal. This will depend on your current financial situation, debts, and assets. Once that it does not get approved by the creditors, you may still do informal arrangements with them so you can settle your debts.
The IVA is legally binding and it is a formal agreement. It is wanted by many people who suffer from debt, especially when they debt amounts to more than what they can earn. However, there are also qualifications as to the amount of debt needed. One needs to get a debt not lower than £15,000. There is no limit stated by the law as to the minimum and maximum amount of debt you should have but usually creditors will not accept the proposal if it is not more than £10- 15,000. Also, it should be an unsecured debt. Through the IVA, you can do monthly repayments which will be done at an amount you can afford. This usually runs up to 5 or 6 years, and it can also extend up to a year. Every month you need to make the repayments through the IP, who will be supervising you.
The IP also has the power to terminate the agreement if you fail to do your repayments. You should seriously do your repayments so that you will not lead to bankruptcy. When applying for an IVA, you need to know if you are capable of paying the monthly repayments which will last long for years. This is why you should need a stable income before you apply for this agreement. This income must be enough to support yourself or your family while you can still pay for the repayments. This why there is a need to consult with experienced debt experts who can help you assess if this is the right debt solution for you. There are still other alternatives you can use when it comes to debt management options so do not lose hope if you think you cannot afford this kind of arrangement. Visit the website http://www.ivaplan.co.uk/ to know about the other options you can use.
If you have already consulted an expert and you both agreed that getting an IVA is the right thing for you to have, you need to know what debts are being covered in this arrangement. Credit cards, store cards, catalogues, charge cards, and personal loans are just among the types of debt you can use the IVA for. Also, there are things called non priority debts where you can also use the IVA for. This includes tax, electricity, and gas debts among others. There are few instances which a person asks his creditor if they can include secured loans but usually, these are not being allowed to be included. When it comes to the number of debts, a person should have two or more creditors with two to three debts for you to qualify for an IVA. Also, you need to consult an experienced expert so you would know the other debts not allowed such as student loans and child support arrears. An IVA can be expensive that is why you have to think twice if you can afford this kind of arrangement. If not, you can still get other help, just check the website mentioned above to know more about help for your debts.