IVA
What is an IVA? If an individual is unable to afford their payments to existing credit commitments they may have the chance to enter into a formal agreement setup by an insolvency practitioner who will arrange the monthly payments acceptable by the creditors and affordable for the individual usually paid over 5 year period.
There after the debt is written off. In essence this is a scheme not suitable for everyone it depends on a number of factors amount of credit you have, no of credit company's you owe, equity if you are a homeowner, affordable disposable income. These are just a few of deciding factors.
It should be remembered that an IVA is not suitable for everyone. An IVA can affect your ability to obtain credit for many years to come and only commonly applies to the most severe of circumstances. Assets such as property, shares, savings etc also need to be taken into account as well as the level of monthly contribution.
We have a policy of best advice so the pros and cons of this course of an IVA will be thoroughly discussed before and action is recommended.
Example:- Mrs Stevenson owed £23,900 her arrangement was term - 60 months @ £250.00 per month = £15000.00 amounting to approx 62% of your current debt. A successful IVA will often avoid bankruptcy.
The setting up of an IVA could in simple terms..
- Halt all legal action in force at present (including proposed or un-discharged bankruptcy proceedings).
- Stop judgements, warrants or winding up notices.
- Stop debt collectors calling at your home.
- Stop demand and default notices.
- Stop harassment by phone or letter.
- Stop pursuit by collection agencies
