An IVA is an accord that is made with your creditors to pay off your debts over a set period of time and is one alternative you can use to pay off your debts. It is a official, legal debt solution. This means it is accepted by the court and your creditors have to stick to it. An IVA is a form of bankruptcy but it is different from bankruptcy. An IVA must be set up by a qualified person, called an insolvency practitioner. This will be a lawyer or accountant. The insolvency practitioner will indict a fee for the IVA.
The insolvency practitioner will deal with your creditors all through the life of the IVA. If you go to a debt organization company for an IVA debt, find out about how much they will charge before you decide. A debt management company is probable to be more expensive because they charge a fee on top of the insolvency practitioner’s fees.
Most IVAs last for a set time – often five or six years so When your IVA has finished:
- you’ll no longer have to pay your creditors for the amount overdue in the IVA
- your insolvency practitioner should give you a ‘completion certificate’ – ask for your credential if you don’t get it
- the record of your IVA will also be in use off the insolvency register
Formal legally -binding agreements
An Individual Voluntary Arrangement is a formal and legally-binding agreement between you and your creditors to forfeit back your debts over a period of time. An IVA debt has to be set up by an insolvency practitioner who is typically a qualified solicitor or accountant. There are many things that you should have to keep in mind before choosing the trustworthy insolvency practicer.
Choosing the right insolvency practitioner
Before the IVA is set up, you may have an informal meeting with your insolvency practitioner to discuss whether an IVA is right for you. Meetings may take place over the phone or at the insolvency practitioner’s office. If you decide to go ahead, you’ll have another meeting in which you will begin the formal process of setting up the IVA. The insolvency practitioner should explain all options available to you before you commit to an IVA.
You should have to give him every little detail about your property, creditors, and debtor. He will help you to get out of the insolvency situation. The insolvency practice will also suggest you about the policy that you will take for the payment of the creditors. You will be given every possible help from the insolvency practitioner.
Before choosing the insolvency practitioner you should have an informal meeting with him so you discuss your problems. The meeting can be taken at the phone call or at the office of an insolvency practitioner. You should also have to think carefully about the Insolvency Voluntary Arrangement. You don’t need to use a debt management company to get an IVA debt setup for your insolvency.