Advise On An IVA

23.02.10 / Finance / Author: Admin / Comments Off
Tags: credit debt, credit debt management, credit management, Debt consolidation, debt counseling, Debt management, debt management companies, debt services, debt settlement, Debt solutions, IVA

You might be confused about what an Individual Voluntary Agreement can do for you, the debtor. If you have been struggling to make ends meet and are considering bankruptcy, this might be a better choice. With an IVA you must have at least an amount of £15,000 due to your creditors.

There has to be two or more creditors involved. Your employment must be regular. You are allowed to own your own home, and you will not lose it in this process. There is a possibility that you will have to remortgage your property for the extra equity given to the IVA. With a bankruptcy you will lose your home.

If you own an endowment that has equity in it this might have to be given also to the creditors. A licensed insolvency practitioner will supervise the agreement. They will send a vote to your creditors to agree or not to the IVA. As long as 75% value that is owed to the creditors vote yes, then all creditors are bound by the agreement.

What your disposable income is after your essential bills are paid will decide what your affordable monthly repayment amount is. The repayment is set at a term for repayment, usually consisting of five years. This will stop the harassing telephone calls and mail you receive from your creditors. They will also stop charging you interest on your debt. For more information check the internet.