Individual Voluntary Arrangement (IVA) – Are You Applying for a Voluntary Arrangement?

So what is an IVA?

An Individual Voluntary Arrangement is a formal arrangement between a person who owes money, and their credit (s), to pay off a manageable percentage of the sum which they owe, so that after after five years or this the debt will be considered as settled .

It is a manageable way to resolve debt subject to your circumstances, occupation and expenses, that usually resolves it within 5 years.

It is considered as a favorable alternative to bankruptcy, and is very manageable.

Who is eligible for an Individual Voluntary Arrangement?

You must be a living resident of either England, Wales or northern Ireland, If you are a Scotland resident you need to ask for a trust deed.

You must have debts in excess of £ 15,000 with 2 or more creditors.

An IVA is an arrangement suitable for those that do not really have another alternative, and want to avoid bankruptcy.

If the applicant has a debt level which is below 85% of the equity in their property (equity = current value of the property – outstanding balances on mortgage and any secured loan) then an IVA can not be justified. The true reason for this is that the creditors will see that the applicant has more value in their property, which they could (if they wanted to) release in a full payment (through a remortgage or secured loan), as opposed to reducing the total of the debt, which would happen in a voluntary arrangement.

How can I apply for an Individual Voluntary Arrangement?

You can apply here .

Alternately you can search for a debt management company with a simple search on Google, Yahoo, MSN, or any of the other search engines.

There are also many organizations advertised through the Tabloid newspapers, that will be suitable in helping you and handling your case.

Source by James Eccles

Leave a Reply

Your email address will not be published. Required fields are marked *