IVA Bank Accounts

Introduction to IVA Bank Accounts

When a person, sole proprietor or partnership’s debt becomes so overwhelming that they are no longer able to pay their bills, they will need to look for solutions to handle this debt. It is best to deal with your creditors before they begin looking for legal methods to get their money from you. If your debt is slight you may want to work with your individual creditors to see what types of arrangements can be made to pay off your debt. If your debt is more substantial, you will need to look for alternative solutions like IVA or bankruptcy. Before making any final decision, it is best to contact a licensed insolvency practitioner who can evaluate your certain set of circumstances and decide on the best solution for you.

Why Choose an IVA?

A licensed insolvency practitioner will compare how much you owe, how much you own, current income and expense and advise you on your best options. Many times an IVA will be considered the best solution. An IVA is an individual voluntary arrangement that works as a binding agreement between you and your creditors to make arrangements for repayment of debt. Your creditors will gather at a creditor’s meeting to make a final decision on how much you will owe them. This number will be less than your current amount due but more than you would owe if you went through a bankruptcy proceeding. You will need to setup any of the IVA bank accounts to use to make your monthly payments.

The best benefit of choosing an IVA over bankruptcy is that you do not need to include your property as part of this agreement and this will prevent the risk of losing your home and other property. Another great benefit of an IVA is that once this agreement has been made, your creditor will no longer be able to seek any additional payments from you. As long as you set up any of the IVA bank accounts and continue to make your monthly payments, your debt will be considered paid in full.

IVA Bank Accounts

A stipulation of IVAs are that you must setup one of the IVA bank accounts, where your money will go into and your monthly payments will come out of this account. These IVA bank accounts will need to be set up so that there are no bank fees, like overdraft charges, being taken out. This will help ensure that there is always money in your account to help make your necessary monthly payment. These payments are very important because if payment is not made you may need to go back to court and this time bankruptcy may be the only option you have left.

One major problem that you may incur with setting up an IVA bank account is that you may not be able to use your current bank. If your current bank is one of the creditors that you owe money to then you will not be able to use that account for your IVA. There are many other banking institutions available and many of them have accounts that are specifically IVA bank accounts.

Have a look at http://www.thinkmoney.co.uk. They offer access to a basic bank account alternative that could be ideal for people on an IVA, or for those who have finished their IVA and are suffering from bad credit.