Debt Solutions in the UK (IVA)

With a bleak market and an economy that is on a downward spiral, the price of every commodity is increasing. No wonder that in such a bleak economy the number of people in debt is rapidly increasing. To pay off these debts people often have to sell their cars and houses. The best recommended solution for these problems is an IVA or Individual Voluntary Arrangement, a debt solution for the residents of Wales, England and Northern Ireland. An IVA is a legally bound agreement that allows you to pay an affordable amount with regard to your debt and at the same time protects you from creditors willing to take action to recover their debts.

The team at  IVAplan.co.uk consists of experts, who endeavor to provide their clients with the best IVA options and advice. Launched in 2001, the firm’s expert team has helped more than 20,000 people debt free. Over the years the debt advisers and the insolvency experts have offered their services for a wide range of debt solutions. Since ones debt solution may not suit the other, the team of specialists only recommends a policy after ensuring that it fulfills all the needs of the applicant.

Once an IVA is signed, a person needs to pay an affordable amount for a period of six years, beyond which any liability of the remaining debt is not on the person. However, the debts on a house or other assets cannot be availed and the amount of unsecured debt must be greater than the value of all the assets combined. Also the individual must make a steady contribution from the monthly income or go for lump sum compensation. Before drawing up an IVA, the applicant must take advice from an expert. The crew of top notch Insolvency Practitioners (IP) at  IVAplan.co.uk arranges the IVA best suited to the needs of the applicant. If both the applicant and the IP consider the agreement to be the best solution, then the IP draws up a statement of the applicant’s monthly income and expenses to figure an affordable payment amount.

Some benefits obtained on applying for an IVA include:

Monthly payments towards to all debts are reduced to a single affordable fee.

If the applicant has followed all the terms if the IVA, after six years all the debts would be written off.

A specialist IP will deal with all the creditors and negotiate all the terms of the IVA.

As long as the agreement is kept, creditors can’t take any legal action to recover debts.

As the arrangement freezes all interest charged on the debt, a larger contribution is made towards the clearing of the debt.

There are certain consequences when IVA is signed.Fees are to be paid with an IVA. Regular contributions need to be made for 5-6 years and the individual has to ensure a steady income during this period. The IVA will also be mentioned in the Insolvency Register until three months, even after it has ended. The IVA will be mentioned on the person’s credit report for six years, thus making it harder to obtain further credit. Any winnings or inheritances will go towards the IVA. Also equities in home have to be released and pension has to be suspended.

Numerous options, apart from an IVA are also available. A Debt Management Plan (DMP) is available to residents of UK. This provides a longer period of repayment. In the regions where an IVA can be obtained, an Administration Order or Debt Relief Order can also be availed to become debt free. In addition to these there are schemes that are exclusive to Scotland. These include Debt Arrangement Scheme (DAS), Trust Deed, Sequestration, Low-Income, Low-Asset (LILA) Bankruptcy etc.