An IVA stands for Individual Voluntary Arrangements are a contract with your lenders to pay whole or part of your outstanding amount. You agree to sing the contract to make regular monthly installments against your debt to an IP (Insolvency Practitioner), who will distribute this payment between your lenders.
Make Lump Sum Payment
Some of the benefits of the Individual Voluntary Arrangement include monthly payments end at the set period of time visit here http://www.ivapros.co.uk/ for more info. You will generally give out less than the total amount you are in debt. If you are in job, where you can jobless if you declare bankrupt, then this program is best for you. But, you have to be cautious, in some jobs your employment may be disturbed by an Individual Voluntary Arrangement. You will keep away from problems if you seek advice from your professional body and examine your contract of service. The benefit is if you own a huge lump sum and wish for a formal contract with your creditors to acknowledge the lump sum amount and write off the remaining outstanding amount.
Obey the Terms of IVA
But, if you do not comply with the terms of the Individual Voluntary Arrangement, in that case your creditors or the practitioner can take any further action against you, through declaring your bankrupt. If lenders do not agree to the Individual Voluntary Arrangement offer, your creditors and continue trying to track you for your amount overdue. As well, you possibly in worse situation than when your started the process, if you paid a set up charges for your Individual Voluntary Arrangement and this is not accepted by your creditors.
Make Regular Payments
There is a hazard that the IVA is approved based on the regular monthly installment that you cannot manage to pay for over a long period of time. You should be extremely careful that the monthly payments are fixed at a reasonable amount and if your position change and you no further afford the monthly payments against your debt, your Individual Voluntary Arrangement may stop. Your practitioner can aim to convince the creditors to agree to a new contract. You must be alert that the program would be recorded on your loan reference case for six year and it can also have an effect on your capability to get additional loan.
Your IP will get fees for arranging up and supervising the agreement. Fees are generally taken from the regular monthly payment you have approved you can manage to give out your creditors. A lot of practitioner will offer a free of cost first meeting to determine whether an Individual Voluntary Arrangement is right in your condition. Some insolvency practitioner will require upfront charges prior to putting forward an Individual Voluntary Arrangement proposal. So, if your creditors not agree to accept your IVA proposal, in that case you will lose the fees you have already paid to the insolvency practitioner. Therefore, you should have to exercise extreme care before making a decision for IVA.