IVA Monthly Payments

Daily living expenses are increasing with the rising cost of oil, gas and food. To meet these expenses, people are increasingly seeking financial assistance from sources such as banks and other lenders. In addition to covering increased living costs, people are also obtaining loans for higher education, cars, marriage, luxuries and property.

Providing you can afford the repayments, obtaining credit is not a problem. Financial problems arise when you are no longer able to meet debt repayments as they fall due. Missing a number of payments can be seen as defaulting on a credit agreement and can prompt the lender to begin bankruptcy proceedings, resulting in the humiliation of being declared bankrupt. To avoid this fate, it is important to plan your finances correctly to ensure that you can make all of the necessary repayments as they fall due.

If you are not able to manage your debts on your own, it may be better to seek help from an IVA company. The IVA, or Individual Voluntary Arrangement, is an agreement between a debtor and their creditors whereby the debtor makes a single monthly payment to the IVA Company that then distributes this payment pro-rata to the creditors. This arrangement usually lasts for five years, after which any remaining unsecured debt is written off.

The IVA monthly payments are set at a level that the debtor can realistically afford. Maintaining the IVA monthly payments is crucial to the success of an IVA, and failure to make the payments as dictated by the arrangement can lead to failure of the IVA and possibly bankruptcy. The insolvency practitioner who supervises the case draws their fee from the IVA monthly payments, meaning that the debtor does not have to pay any additional fees outside of their monthly payment. Provided that the debtor maintains their IVA monthly payments for the length of the IVA, all remaining unsecured debt is written off and a certificate of completion is issued. The debtor is then able to continue their life debt-free.