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2008-03-24 09:44:21
Getting Financial Help with an IVA (Individual Voluntary Arrangement)
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 First off, what exactly is an IVA?
An individual voluntary arrangement is an arrangement struck between someone who owes money to creditors and the creditors themselves. This "arrangement" is usually a last-ditch effort to stave off bankruptcy.
Generally a person who is heavily in debt will hire the services of an insolvency practitioner. This "practitioner" will serve as the go-between between the debtor and the companies that they owe money to. The practitioner will attempt to negotiate a repayment plan that will usually involve a lump sum payment plus a series of monthly payments.
Creditors tend to be willing to agree to these deals because if the person enters bankruptcy then the creditor will receive much less. IVA's can only proceed if creditors representing more than 75% of the total debt agree to the deal.
A practitioner will analyze the finances of a debtor (income, expenses and total debt) and suggest a repayment plan. This plan will usually involve paying off most but not all of the total debt, and usually with at least a partial freezing of the interest rates. Practitioners will collect a fee for their services that is taken out of a lump sump payment that the debtor will make as part of the plan each month. The practitioner will take this lump sum payment and distribute the proper payments to each creditors, while collecting a small fee for their service.
There are many advantages in avoiding bankruptcy. A bankruptcy will remain on your credit for a number of years, plus certain careers can be negatively affected by a bankruptcy. There are many advantages in going the IVA route as compared to the bankruptcy route.
Many practitioners will offer free, no obligation consultations.
Click here for a no fee debt consultation!
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There is NO FEE and you are under NO OBLIGATION!
Fill out our call-back form and you will be contacted by one of our experienced advisors who will work with you to help you reduce your debt and monthly payments.
* Save Money on Interest Rates
* Avoid bankruptcy
* Keep your home
* Clear unsecured debts
* There is no obligation
* Pay what you can afford
* Be Financially Free
* This is a No Fee service
Applicants must have a minimum of £5k of total debt excluding mortgages and/or secured loans.
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