Our calculator will help you to decide whether an IVA is right for you.
Taking credit to meet your financial requirements has become very common these days. Such requirements can be education, high-value purchases, home improvements or property purchases. Additionally, with the rising cost of living and the modern lifestyle, expenses have increased significantly, so seeking financial aid from external sources has become the norm.
Obtaining credit from a lender is not a problem. The problem is being unable to repay it. Defaulting on loan repayments affects your credit rating and can ultimately lead to repossession of assets and bankruptcy. Careful financial planning can help you avoid this possibility.
If you find it tough to deal with your finances and debts on your own, you can seek help from one of the many companies that provide assistance in such matters. Many of these companies are experienced and have well reputed. Through IVA debt advice or an Individual Voluntary Agreement, these companies provide you with valuable guidance to settle your debts. IVA debt advice is fundamentally a financial tool to help you in making organised payments within a specific time frame in a very affordable manner.
An IVA also aids you in making payments at much reduced rates to the creditors concerned. Under IVA debt advice, the repayment period is fixed, usually at 5 years. In certain circumstances, the IVA company may increase the repayment period, although this is uncommon.
Basically, an IVA is an agreement arranged by an insolvency practitioner. The main objective of the practitioner lies in coordinating with the concerned creditors and in preparing the requisite documentation. It is his job to supervise the case to ensure that the terms of the arrangement are adhered to.
Initial IVA debt advice is usually free. If your case is approved, it will start incurring fees. The insolvency practitioner will not usually bill you directly for their fees. Instead, their fees are taken from the agreed monthly contribution such that you never have to pay additional costs to the insolvency practitioner or IVA company.
These insolvency practitioners will monitor your contributions and distribute payments to the creditors as and when sufficient funds have been received. For the duration of the IVA, the insolvency practitioner will maintain regular contact to ensure that payments are received on time.
Once you have completed your IVA you can notify the credit reference agencies by submitting a copy of your completion certificate to them.