A Weight Off Your Shoulders
This article discusses the
importance of an IVA also known as an Individual Voluntary Agreement, as a
solution to come out of heavy financial debt.
An Individual Voluntary Arrangement, known as an IVA, is an agreement
made between a debtor and his or her creditors to repay a percentage of the
debts owed over the ?life’ of the IVA which is generally five years or sixty
months. To ensure that monies are distributed evenly and fairly to the
creditors the IVA is managed by an Insolvency Practitioner. The Practitioner
ensures that the debtor is given the fairest and most honest, realistic opportunity
to make regular monthly payments into their IVA fund. The fund is managed and
supervised throughout the duration of the IVA by the Insolvency Practitioner.
An IVA can only be initiated by the debtor unless he or she is an
undercharged bankrupt, if this is the case the trustee, Official Reviewer or
the bankruptcy courts can initiate an IVA. When a debtor is facing bankruptcy
the courts are obliged to consider whether an IVA might be a more appropriate
solution than bankruptcy.
IVAs should not be seen as a way of simply paying debts off over five
years and forgetting about it, there are
some careful considerations to be made by the debtor in respective of the what
is exactly required by them and the genuine commitment involved with an
Individual Voluntary Arrangement. An IVA is a formal and legally binding
arrangement.
There will be an marked effect on the debtor’s current assets, savings
and investments, although an IVA has less risk on these than bankruptcy there
is never the less a risk. Debtors will be expected and indeed will have to
agree to sell luxury items and re-mortgage their home as well as surrendering
their savings and investments.
Problems which can lead to people falling into debt include problems
such as having insufficient money to pay their mortgage, holiday debts, credit
and store card debts, resulting in very little, if any, spare cash to live a
reasonable lifestyle. By using an Insolvency Practitioner a debt can
realistically look at amalgamating their debits into one monthly payment which
is supervised by the Insolvency Practitioner. This will in turn lead them to
having more spare cash and relieves the stress and pressure of numerous debts.
The Insolvency Practitioner can help by giving expert advise on all
aspects of an IVA, reduce debts by having them put into one far more manageable
monthly payment, stop creditors from harassing the debtor, freezing the
interest on all debts, which in turn will lead to the debtor to have more spare
cash and a better quality of life without the worries and health problems being
in debt can cause.
It should be noted however, that although an , they should not under estimate the
commitment which is required with an IVA.
About the author
Money Solve is a company dedicated to help people
out of their financial difficulties with solutions such as an IVA, an
Individual Voluntary Agreement to get their life back on track.
Tags: appropriate solution, bankruptcy courts, card debts, careful considerations, creditors, current assets, debtor, debtors, financial debt, genuine commitment, individual voluntary agreement, individual voluntary arrangement, insolvency practitioner, insufficient money, iva, luxury items, monies, paying debts, realistic opportunity, trustee
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