| |
| |
|
|
|
| |
|
| ||
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:
The Advantages Of An IVA
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:
Google News |
|
|
|
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.
|
| home | site map |
| Copyright ©2009 - All Rights Reserved. Hosted by Del Information Services. |
