IVA Debt Solutions
Introduction to IVA Debt Solutions
Many people and businesses are finding themselves trying to deal with a large amount of debts and are looking for the best solution to handle this debt. What they once were sure they could afford has now become overwhelming and exceeds the amount of income coming in. For some, the recent down turn of the economy or a loss of job has put them into this position. Debt can add up very fast and can seem sometimes like there is no way out. Once your debt level has come to the point where you have realised that there is no way that you are going to be able to successfully repay all of your bills within the timeframe that is expected, it is time to take action.
You will want to look for solutions before it is too late and you have no options left and lose your home or other property. At this point, you should gather together all of the expenses that you have incurred and know what the balance still due is. You will also need to figure out what your total income is and any income that you know will be coming in. When you have all of the needed information together, you should find a good licensed insolvency practitioner to help advise you of your best options. One of the main solutions they will consider is an IVA debt solution.
IVA as a Debt Solution
An IVA debt solution is an Individual Voluntary Arrangements that can be one of many debt solutions for individuals, sole traders and partnerships. A licensed insolvency practitioner should be contacted if you are considering this type of option to consolidate your debt. They will be able to tell you if IVA debt solutions are the best option for your specific set of circumstances. This solution can be a great way to avoid bankruptcy and reduce your debt owed as by as much as seventy-five percent. This option is not the best for every situation, so it is vital that you receive proper advice before making a final decision.
IVA debt solution arrangements work with your creditors to determine a fair price that is acceptable with them to settle your debt. After an IVA proposal is submitted, your creditors will attend a creditors meeting where they will vote to determine what amount of repayment they will agree to. All the creditors will vote and at least seventy-five percent in value must approve the agreement for it to take effect. This agreed upon amount will be higher than what the creditors know they would receive during a bankruptcy which is why they agree to it. Once approved, this agreement will be made official and the debt you now owe will be broken down into monthly payments.
By choosing any of the IVA debt solutions, you will be able to successfully pay off your creditors and bankruptcy will be averted. This agreement becomes binding and as long as you continue to make your monthly payments, the creditors will no longer be able to seek additional payment from you. This type of payment arrangement usually lasts for about five years but can be longer or shorter based on your particular arrangement. |