A lot of people are currently in a financial crisis. Financial crisis involves a lot of factors, which includes debt. Debt is one major influence when it comes to financial crisis. There are many people who turn to debt when their incomes do not make meets end. They need debt in order to pay for expenses or buy necessary things that they need in order to live. Although debts can really help people in their present financial situation, it can also worsen the situation when debts are not being paid. Then, people’s financial situation will now get worse because of the unpaid debt.
However for those who are qualified, there is an agreement called IVA. IVA stands for Individual Voluntary Agreement. It is a help that most people want because it is known to be a debt free solution. This is a formal agreement between you and your creditors that states that you only pay what you can pay for and any remaining debt at the end of an agreed contribution period will be written off. Also, this arrangement will help people so that creditors may not take any legal action against them.
An IVA is legally binding. It is available for countries such as England, Northern Ireland, and Wales. For those in Scotland, there is also a similar agreement called protective trust deed. For one to qualify in the said agreement, they should be residents of the countries listed above. This IVA works when approved both by the creditors and you. The proposal will be drafted by a qualified and licensed insolvency practitioner, who will be the one to supervise in the whole duration of the agreement.
Not all people can be approved of the said agreement, because you have to qualify first in the prior requirements. This IVA will always be at the person’s advantage because this is intended for them. Although it can help a lot, it is not for all people. It is better to consult first an expert if this kind of agreement will be beneficial to you, as there may be other agreement that will help you more than this one. However if you and the expert think that this will be a solution for you to help in the financial crisis you are in, then these are the advantages that will help you to clear your debt. Check out the website IVAPlan.co.uk.
First advantage would be the time frame. Usually, an IVA lasts up to 5 or 6 years. This is enough time to make affordable repayments each month. This can be extended up to 12 months depending on the agreement between the creditors, for there may be assets that need release. Another advantage would be of course, the affordable repayments. This is at your advantage because that is the foundation of the agreement. You pay for what you can afford and that payment includes all that you need to pay including the fees needed to pay for the insolvency practitioner (IP). The IP will be the one to facilitate the repayments you will make. Once you fail to do your monthly repayments then the IP will be the one to cancel out the whole agreement. It may lead you to bankruptcy so you really need to pay attention when it comes to your monthly repayments.
Other advantages include of course, the insolvency practitioner. The IP will be the one to help you from the start of the whole agreement, up to the end. So, it means that the support is on your side. The IP will also be the one to clear out the details you need to know about the whole ordeal. The IP will be the one to explain the process to you. Another advantage would be that you can keep some assets depending on the creditor. You need to know first if you are qualified as there is a certain amount of minimum debt that you need to have in order for you to be able to get an IVA. To know more about the other advantages and also, if you can qualify, check the website ivaplan.co.uk to find out the answers about your other queries regarding the IVA.