An Individual Voluntary Arrangement (IVA) is an effective way of dealing with your debts whereby you come to an agreement with your creditors to make a more affordable monthly repayment. With an IVA debt management programme your repayments will be tailored to fit your current financial situation. Furthermore, all your interest charges will be frozen, and the money you owe will be paid off over a specific period.
How can you be certain that IVA help is right for you?
When you seek IVA debt advice, you will find that Individual Voluntary Arrangements are just one of the options open to you. The type of repayment programme that you enter into will depend on your personal financial status. An Individual Voluntary Arrangement will work best for you if you have sufficient amount of money each month to pay towards what you owe and/or a lump sum or assets that could be used.
To qualify for an Individual Voluntary Arrangement, there are other factors that need to be taken into account. Firstly, you must have at least three outstanding debts that total £15,000 or more. Secondly, you must owe these amounts to at least two different creditors. The third factor is that you must have the capacity to pay at least 20 pence for every £1 you owe.
Individual Voluntary Arrangements are legally-binding arrangements where you agree to pay a certain amount off your debts within a specified period of time. At the end of that period, any unpaid amounts that were included in the IVA debt management programme will be written off. Depending on your individual circumstances, you can either agree to pay in monthly installments for a set number of years or include a lump sum repayment.
What types of debts can be included in Individual Voluntary Arrangements?
Unsecured debts can be considered for an Individual Voluntary Arrangement. These include:catalogs, credit cards, overdrafts, personal loans and store cards etc. It is also possible to include some priority debts in an IVA, for example, taxes, fuel debts and council tax arrears. These will be subject to agreement by the creditors though.
There are certain debts that cannot be included in the arrangement. These include maintenance or maintenance arrears, mortgage and secured loan arrears, Child Support Agency arrears, student loans, magistrates' court fines and rent arrears. You should also bear in mind that you will have to disclose details of all your assets and liabilities by law when you enter into an IVA.
The payment agreement that you will be entering into will have to be set up by an Insolvency Practitioner(IP) who will normally be a qualified solicitor or accountant. An IP has the authority to set up an IVA on your behalf and will apply to the courts for an interim order whilst he is putting together your proposal for payment. This will stop your creditors from taking you to court in the meantime.
There are a number of benefits of IVAs. First of all, your repayments will continue until a specific agreed date and you will usually end up repaying less than you owe. Secondly, you will not have the same restraints as you would have had if you were declared bankrupt. Another important advantage is that your house and other property will not be automatically seized from you. However, you may have to agree to a re-mortgage to repay some of the debt.
Back on Track Loans offers various methods to help you reduce your monthly outgoings. The company also provides debt consolidation loans for people with a poor credit history. Therefore, if you are not suitable for an Individual Voluntary Arrangement or other repayment plan, you may find that a consolidation loan will help you. Because Back on Track has more than 250 lending options available the staff should be able to find a low cost product to suit you.
http://www.backontrackloans.co.uk
Article Source: http://EzineArticles.com/?expert=Theo_Averill
Article Source: http://EzineArticles.com/7936270
How can you be certain that IVA help is right for you?
When you seek IVA debt advice, you will find that Individual Voluntary Arrangements are just one of the options open to you. The type of repayment programme that you enter into will depend on your personal financial status. An Individual Voluntary Arrangement will work best for you if you have sufficient amount of money each month to pay towards what you owe and/or a lump sum or assets that could be used.
To qualify for an Individual Voluntary Arrangement, there are other factors that need to be taken into account. Firstly, you must have at least three outstanding debts that total £15,000 or more. Secondly, you must owe these amounts to at least two different creditors. The third factor is that you must have the capacity to pay at least 20 pence for every £1 you owe.
Individual Voluntary Arrangements are legally-binding arrangements where you agree to pay a certain amount off your debts within a specified period of time. At the end of that period, any unpaid amounts that were included in the IVA debt management programme will be written off. Depending on your individual circumstances, you can either agree to pay in monthly installments for a set number of years or include a lump sum repayment.
What types of debts can be included in Individual Voluntary Arrangements?
Unsecured debts can be considered for an Individual Voluntary Arrangement. These include:catalogs, credit cards, overdrafts, personal loans and store cards etc. It is also possible to include some priority debts in an IVA, for example, taxes, fuel debts and council tax arrears. These will be subject to agreement by the creditors though.
There are certain debts that cannot be included in the arrangement. These include maintenance or maintenance arrears, mortgage and secured loan arrears, Child Support Agency arrears, student loans, magistrates' court fines and rent arrears. You should also bear in mind that you will have to disclose details of all your assets and liabilities by law when you enter into an IVA.
The payment agreement that you will be entering into will have to be set up by an Insolvency Practitioner(IP) who will normally be a qualified solicitor or accountant. An IP has the authority to set up an IVA on your behalf and will apply to the courts for an interim order whilst he is putting together your proposal for payment. This will stop your creditors from taking you to court in the meantime.
There are a number of benefits of IVAs. First of all, your repayments will continue until a specific agreed date and you will usually end up repaying less than you owe. Secondly, you will not have the same restraints as you would have had if you were declared bankrupt. Another important advantage is that your house and other property will not be automatically seized from you. However, you may have to agree to a re-mortgage to repay some of the debt.
Back on Track Loans offers various methods to help you reduce your monthly outgoings. The company also provides debt consolidation loans for people with a poor credit history. Therefore, if you are not suitable for an Individual Voluntary Arrangement or other repayment plan, you may find that a consolidation loan will help you. Because Back on Track has more than 250 lending options available the staff should be able to find a low cost product to suit you.
http://www.backontrackloans.co.uk
Article Source: http://EzineArticles.com/?expert=Theo_Averill
Article Source: http://EzineArticles.com/7936270
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