IVA Information
If you're thinking about an IVA, it is essential to get the best
information possible. This is because although an IVA can be a manageable
way to resolve your debt problems, it can also represent a commitment of
up to five years. Getting good IVA information is an important part of
deciding whether you want one.
This article provides IVA information and an overview of the IVA process
to help you make an informed choice about how to solve your debt problems.
What Is An IVA
The Insolvency Act of 1986 introduced the IVA as an alternative to
bankruptcy. An IVA enables debtors to try and reach a settlement with
their creditors which usually involves the repayment of the debt in
monthly installments and a reduced repayment amount. An IVA is a legally
binding contract between debtor and creditor.
Information About The IVA Process
You find an Insolvency Practitioner to act on your behalf to draft and
propose the IVA to your creditors. The process of applying for and setting
up the IVA usually takes about 4-6 weeks, which includes activities like
fact finding, collecting evidence, drafting the IVA proposal, sending the
proposal to the creditors and waiting to hear whether it has been accepted.
During this time, in the majority of cases, the debtors will only need to
take part in minor activities at this stage like providing evidence and
signing the documentation.
The IVA that is proposed to the creditors is based on what the debtor can
realistically afford to pay over a five year period. In most instances, it
is be made up of sixty monthly payments, although it can also include lump
sum contributions such as from the release of equity from a property.
Whether or not an IVA is approved by the creditors depends on its
receiving a 75% majority in favour of it. Most lenders have standard terms
for what they will accept, which normally includes a reduction in the
overall level of debt by as much as 75%.
When the IVA has been approved, it runs for a five years. During this time
payments are made on a monthly basis into a fund governed by the
Insolvency Practitioner. The money in the fund is used to pay off the
creditors and the Insolvency Practitioner's fees.
Also during the period, the creditors are required to freeze all interest
on the debts, and they are not allowed to pursue the debts.
If at the end of the five year period, the IVA has been satisfactorily
completed, all of the debts are cleared.
Why Were IVAs Introduced
The IVA was initially designed as a convenient way of processing
insolvency cases without incurring the costs and court time involved in
bankruptcy proceedings. The IVA process is therefore much simpler than
bankruptcy and the outcome is significantly less severe.
Information to Help You Decide If an IVA is Right for You
An IVA is appropriate for those who are unable to pay off their debts but
do not want to file for bankruptcy. An IVA is likely to succeed if:
You have a minimum unsecured debt of around £15,000 -20,000.
You could make monthly repayments of at least £250-300.
You have a stable monthly income.
The Advantages Of An IVA
An IVA enables you to only pay back an agreed percentage of your debts
While an IVA is in place, your creditors are not allowed to harass you.
Unlike bankruptcy, an IVA doesn't affect your professional status or your
ability to hold public office.
With an IVA, interest on your loan is frozen which means that your debt
won't keep growing
Mike Curry runs a free and independent national IVA information and advice
line called Clear Start. For further information, please click here:
Individual Voluntary Arrangement or telephone 0800 138 5445.
MORE RESOURCES:
RELATED ARTICLES
The Credit Card Debt Termination Scam
"Legally terminate credit card debt! You can be debt-free in 4-6 months!"
Advertisements like this are for a new type of program that has spread via
the Internet over the past few years. It's called "Credit Card Debt
Termination," and victims are paying $1,000s for this bogus service.
Debt and Financial Optimism in the UK Continue
With £1.3 trillion pounds worth of debt in the UK, Scotland's Citizens
Advice Bureau has welcomed a new Bill to regulate lenders and protect
borrowers from creating un-repayable levels of personal debt.
The Five Most Popular Questions About Bankruptcy
WILL MY CREDITORS STOP HARASSING ME?Yes, they will! By law, all actions
against a debtor must cease once bankruptcy documents are filed. Creditors
cannot initiate or continue any lawsuits, wage garnishees, or even
telephone calls demanding payments.
Save Money When Going Out
It seems as though whenever we go out for the night, it costs much more
than we originally intended to spend. Having a 'night on the town'
shouldn't cost you a whole weeks salary.
Debt Collectors; And what you can do to Get Them Out of your Life
FTC opinion letter on validation Section 809(a) of the FDCPA, 15 U.S.
How Do You Spell Debt Relief?
Of all the problems possible in a marriage, finances cause the most
marital discord. Many singles consider finances to be their most worrisome
issue.
Credit Card Debt: How to Get Rid of It
This method is simple, but requires some discipline.First, you have to
stop any new spending on your cards.
Is My Credit Card Debt A Problem?
For most Americans, credit card debt is a dangerous and growing problem.
The average American family has more than $8000.
British Families and Debt
There is current concern from the Bank of England that British families
are getting deeper into debt, however, it has been said that lenders are
putting themselves at risk because people are now more willing to make
themselves bankrupt.Despite people already having significant amounts of
debt, credit card companies are still prepared to lend these people money.
Why You Should Get Out of Debt Today?
The main reason for getting out of debt today, is because people with
little or not debt have more control over their future:1. They have more
discretionary income, meaning that you won't be living pay check after pay
check as you probably are right now.
Bankruptcy Your Best Bet?
Filing bankruptcy is a common practice among the U.S.
Christian Debt Consolidation - Feel Comfortable About Managing Your Debt
Many Christians feel uncomfortable with the notion of being in debt, and
even more so when the debt has gotten out of control. Some say that it is
not acceptable for Christians to owe any money, even for such necessities
as a home.
Bankruptcy - The Easy Option?
Incredibly, since the changes in the bankruptcy law in April 2004, debtors
are more likely to petition for their own bankruptcy rather than their
creditors! You would think that most people who have been threatened with
the prospect of being made Bankrupt would be riddled with fear of the
possibility. It is more widely referred to as the "Big B" rather than the
dreaded word itself.
Get Debt Free
If you once have been caught in the debt trap, how do you come out of it
and be debt free? We are different and each of us has our own lifestyle
and our own financial state, so the way to debt elimination is different
from person to person. One plan will be good for some, but not for others.
Debt Relief -- Why Most Programs Have A 75% Failure Rate
Debt consolidation, equity loans, credit counseling, debt management
plans, even Chapter 13 bankruptcy - it doesn't matter which of these debt
programs you're talking about. They all suffer from one fatal flaw, the
number one problem that causes most people to fail at eliminating their
debts through these techniques.
Creating A Realistic Budget
Budgeting -- ooh, what a scary word! If you want to frighten someone whose
finances are out of control, suggest that they tally up their expenses on
a piece of paper. We all understand the value of such an exercise, but
when it comes to the practicality of putting a budget together, we get
cold feet.
New Bankruptcy Law Will Not Protect You from Identity Theft
Recently passed by Congress with overwhelming support, the oddly-named
Bankruptcy Abuse Prevention and Consumer Protection Act was designed to
eliminate "bankruptcy of convenience." The perceived problem is that many
compulsive gamblers, shoppers and drug users often run up huge debts on
easily available credit cards with no intention of paying their bills.
Assess Your Financial Attitude and Eliminate Your Debt Forever
Want to know if your attitude towards your finances is helping you or
damaging your future? Take this Quiz and find out..
Credit Repair - Understanding The Basics
What is Credit?Credit means that you are using someone else's money to pay
for things. It also means that you are making a promise to repay the money
to the person or company that loaned you the money.
Help for the Single Mother with Managing Credit and Debt
Today's consumers benefit drastically from the usefulness of credit.
Credit cards are especially useful for large purchases, emergency
situations, making reservations, identification, and protection from fraud.
--
http://venteinternet.blogspot.com |
http://pusatinternetmarketing.blogspot.com |
http://webandblogdesign.blogspot.com
No comments:
Post a Comment