Arranging IVA's

The rise in the level of bankruptcy and its detrimental effects on financial standings has led to the growing popularity of the individual voluntary arrangement (IVA). Avoiding bankruptcy and taking complete control of your personal debts can be made possible through an IVA. An IVA can be the most effective way of treating excessive financial problems.

Through an IVA, the debtor pays their IVA provider a fixed amount for a certain period in lieu of their normal repayments. The IVA provider will then distribute these funds pro-rata to the creditors. On completion of the IVA, any outstanding unsecured debt is written off. If you are a homeowner, you may be required to remortgage in the final year of the IVA to release a percentage of any equity you have. After the individual voluntary arrangement has been agreed by the creditors, they do not have the right to ask for additional payment from you. Before going entering into an IVA you should always seek advice by consulting professionals from an IVA company.

Arranging IVA’s for securing your financial position is very important. The process of the arrangement of IVA does require few simple procedures.

• Consulting a debt specialist is the foremost task regarding the application for an IVA. The debt specialist will help you in analysing your financial position and the implementation of the different solutions for tackling your present financial problems.
• Applying for an IVA requires proper planning. You need to analyse your paying capacity and this could only be done after a proper evaluation of your monthly income and expenditure. You also need to determine the amount of debt that you owe to your different creditors.
• Your chosen insolvency practitioner will draft a proposal to your creditors and send this to you for approval.
• Once agreed, the insolvency practitioner will lodge the proposal with the court stating that an IVA is the best possible option for you.
• Once lodged with the court, your creditors will be invited to vote on your proposal. They are permitted to make modifications, however these must be accepted by you in order for the IVA to proceed.
• The interest on the debt is frozen because of the implementation of an IVA. All contact from your creditors should stop after the IVA has been approved, and any correspondence should be sent to you insolvency practitioner.

Following few simple steps can help you in a positive way in your process of arranging IVA’s from a reputed IVA company.