Debt Solutions:The IVA process explained
Wednesday, 19. August 2009
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Debt Settlement Blog
Taking on an Individual Voluntary Arrangement (IVA) is not an easy decision. However, if you are committed to clearing your debts then an IVA has many benefits and may be the right debt solution for you.
An IVA is a legally binding way to clear your debt. It allows you to:
Aside from providing a means to wipe your debt clean within five years and reducing the amount of outstanding debt that you have to pay, the main benefit of an IVA is that debt repayments are set at a level based on what you can comfortably afford. This means more money in your pocket at the end of the month.
The procedure involved in securing an IVA is as follows:
- Completing a standard application form and talking through your application with a dedicated debt expert.
- If you meet the criteria, then you will be accepted onto the IVA programme.
- A panel member will then contact all your creditors on your behalf.
- Your IVA proposal will be drafted based on all the information you have provided - this written agreement sets out the terms of the IVA.
- An “Interim Order” is then granted which enables full protection from legal action from your creditors.
- Your panel member will prepare a statement called a “Nominees Report”. This sets out in professional terms the bona fide IVA offer.
- A meeting of creditors is scheduled in order to approve the IVA.
Once accepted you will be entirely left alone form your creditors. An approved IVA agreement means you must keep up your monthly IVA contributions, however you are free from the crippling debt and unmanageable payments of the past.