07-07-2012 – (Kazor.com) – An IVA is nothing but a fixed term repayment plan which helps a person who is facing a very serious problem of debt money and this is the best way to repay the creditors and protecting own self from legal and bankruptcy problems.
An IVA is a legal agreement which is established in 29th December 1986 as part of Insolvency Act 1986 in the UK.
IVA is available for the people who living in England, Wales or Northern Ireland.
Let’s see some regular questions and answers which gives great knowledge about IVA.
• What is an Individual Voluntary Arrangement?
o An IVA is an agreement which connects applicant and creditors which replace all debt payments with just one payment, which is based on a particular’s affordability.
• What is an IVA’s duration?
• An IVA normally contains 5 years or 60 months time period to repay the debt. The terms and conditions are fixed before one can connect to IVA plan and once this is fixed then creditors can not change it.
• What is the minimum debt level for an IVA?
o If a person wants an IVA plan then the debt payment must be minimum $10,000. People who have repayment less than $10,000 will no longer qualify for IPA facility.
• What is an IVA’s minimum repayment level ?
o The IVA minimum repayment level is $100 per month for a $10,000 debt. This monthly payment rises if you have more than $10,000 to pay. The debt must also be from minimum 2 different creditors. In a simple way, The more you owe the more you pay.
• What is an IVA’s application procedure?
To apply for an IVA plan you have to talk with an IVA adviser who guide you better. They will tell you about you are applying for this plan or not and if applicable than the application process starts. The application takes minimum 5-6 weeks to complete, after that you come to know that your application is accepted or not by your creditors. One main thing is that minimum 75% creditors must agree with your application otherwise this plan will not work.
The main thing to know is that the IVA only helps if you have unsecured money to pay like credit cards, loans, current accounts, store cards, borrowings from friends and family etc. IVA do not help in secure debt like a home loan or your motor vehicle.
Benefits of IVA Plan :
• Once the IVA is approved, you get great relief from the call, letters and other annoying things which come from your creditors. IVA provides better relief to your mind.
• Interest and the late payment charges can be stopped, once the Iva is aprooved from creditors.
• Once creditors agreed to IVA plan, they don’t take any legal action or other thing to you. You find yourself very secure.
• The main and very important benefit of an IVA is that it will not effect any professional status of the debtor. You can freely work without any kind of stress.
Loria is a researcher of “Individual Voluntary Arrangement (IVA)” subject. If you want more updates on it so stay connect with an author or you can visit at http://www.bankruptcy-insolvency.co.uk.