IVA or individual voluntary agreements or IVA can be regarded as an agreement in relation to the amount that a creditor owes to its debtors. The same should be refunded within a certain period of time, and since this is a formal debt solution, it requires the interference of court procedures and therefore, the creditors have to abide by the terms and conditions that have been laid by the court. In this regard, insolvency practitioner should be involved in this IVA who would be either an accountant or a lawyer. The individual would charge some amount of money from the person who is seeking their service. Also, the practitioner would have to deal with the creditor throughout the IVA.
How To Make The Payments?
If you are planning for IVA, then you also have to find out a repayment plan that would help you to follow the right throughout the IVA. The repayment plan is usually applied to the creditors and if they agree will the same they would pay a certain amount of money after five years. It would be directly paid to the practitioner. In case, the payments are not enough to pay off the debt then it would be written off. In this regard, the insolvency practitioner should help you accordingly.
How To Consider Whether IVA Is The Best Option Or Not?
Though IVA can be expensive enough and bring in some risks, then they are flexible to meet your requirements. Some of the possibilities of risks are as follows:
- In case you own a home, you might have to re-mortgage the same.
- Pertaining to IVA, all saving and pension account might get affected in order to pay the creditors.
- In case you are working in the position of an account or solicitor, it might affect your job.
- In case your financial conditions change, you still have to keep up with your IVA payments. For any problems with the creditors, the IVA would fail to result which you would end up in bankruptcy.
What Are The End Results Of An IVA?
An IVA extends for a span of five or six years, and after the same has finished, the following takes place.
- The complete record of the IVA would be taken off by the insolvency register.
- You will not have to pay your creditor anymore in terms of debt of the IVA.
- A complete certificate should be given by the practitioner that would state that the individual voluntary arrangements are completed.
Therefore, you have to careful while choosing the practitioner, as the person would take you on their right path. A detailed discussion between the creditor and the practitioner would help eventually to complete the agreement easily.