UnCategorized If you are struggling with a high level of unsecured debt that you can’t afford to repay within a reasonable period of time, then an IVA (Individual Voluntary Arrangement) may be appropriate for you. An IVA is a legally binding agreement between you and your unsecured creditors. If you can commit to repaying a certain portion of your debt over the course of your IVA, your creditors will (if they accept the terms) agree to hold off on (or stop) any legal action against you – and to write off any outstanding debt once the IVA comes to a successful conclusion. It is important to note that to be eligible for an IVA you must, in most cases, be able to commit to making regular reduced monthly payments for 5 years. How does an IVA work? – Before an IVA can begin, voting creditors accounting for at least 75% of your debt would have to agree to the terms set out by you and your Insolvency Practitioner (IP) in your IVA proposal. – In most cases, you will make regular reduced monthly payments to your IP for 5 years (however, this may vary depending on the terms of the agreement and whether you miss any payments throughout its duration). Your creditors will each receive a portion of this money according to how much you owe each of them (this is known as a pro rata payment). – IVAs are legally binding debt solutions, which means that once one begins, creditors can’t change the terms of the agreement, or cancel it altogether – providing you stick to your side of the agreement. – If you are a homeowner, you may be required to release some of the equity in your home half way through the final year of the IVA, so you can pay more towards your debts. – When you make your final payment and the IVA comes to a successful conclusion, any outstanding unsecured debt will be written off. – Please bear in mind, though, that entering an IVA will affect your credit rating for 6 years from the time it starts, which can make it harder and/or more expensive to obtain further credit during that time. It is important that you contact a professional debt adviser before committing to any debt solution. They will be able to discuss your situation with you and help you consider any alternative options you may have. By rushing into a debt solution you may find yourself committed to something that you cant get out of. About the Author: 相关的主题文章: