IVA Management

Introduction to IVA Management

IVA plans have become increasingly popular in the UK over the past few years, despite the fact that they are anything but new. IVA plans have been around for more than 20 years now, but it was not until recently that they have become a part of everyday life for many people. The main reason for this is the fact that more people are in debt today than there were 10 or 15 years ago. Also, an IVA plan is a good and useful alternative to bankruptcy, which is a process that is very unpleasant and undignified for many people, considering that it cannot be kept private.

Also, bankruptcy involves people losing all their assets except a vehicle and household objects. On the other hand, an IVA plan gives people the chance to keep not only all of their possessions, but also their dignity. When it comes to IVA management, it has to be mentioned that there are many things to be aware of before applying for an IVA and that people should be aware of all the aspects of the IVA process before they enter into one.

IVA Management – Things that People Need To Know

Even though many people believe that all of their financial problems will be solved simply by applying for an IVA plan, things are a little more complicated than this. Namely, applying for an IVA is just the beginning of a long process, providing that people qualify for an IVA plan at all. Although many people are not aware of this, the fact is that they need to have more than £15,000 of unsecured debt and at least three creditors in order to apply for an IVA plan. Although there is not an actual legal minimum of creditors needed for an IVA plan, IVA companies often prefer to deal with more than two creditors as this gives them a better chance of their proposal being accepted.

Apart from this people who own material assets that could pay off the entire debt are not eligible for an IVA plan. The debtors also need to have a steady job, although there are exceptions to this rule made very often. It has to be mentioned that even if all of these criteria are fulfilled that there is a chance of the creditors refusing to make any kind of deals, even if this could mean that they will lose more money eventually. When and if people qualify for an IVA plan and when they are in the process, they will have to be very careful about fulfilling all of their commitments, meaning that they should make their monthly payments regularly and without being late.

The Importance of IVA Management

IVA management includes a good understanding of the whole process and following the rules of the IVA strictly. These are very important, meaning that if people do not follow the rules they could end up getting themselves into more trouble than before and it could also lead to bankruptcy.