IVA advice has to be taken before going for it as an option to be free of debt
Making an IVA agreement is just one way of getting out of debt but before you sign up for an agreement it is essential that you get IVA advice before committing yourself to an agreement.
An IVA - or individual voluntary arrangement - is a legally binding agreement that you will be signing and you have to ensure that you are able to make the new repayments each month along with being able to carry on meeting any other essential debts and outgoings at the same time. If you feel it will still be a real struggle, then it would be best to review your finances once more otherwise you will find yourself back where you started - but this time, bankrupt.
An IVA can only be taken as a way to be free of non-essential debts such as any loans, credit cards or store cards. Other debts have to be dealt with by another manner.
An IVA is watched over by an insolvency practitioner who is either an accountant or independent solicitor for the term of the agreement and the agreement itself is between yourself and your creditors. You will offer a single payment each month which then has to be voted on by your creditors as to whether they will accept it or not. However not all have to agree - only 75% have to accept your proposal for the agreement to go ahead.
The more IVA advice you can get before rushing into this option the easier it will be for you to decide if this is the best way to recover from debt for your individual circumstances. There are other ways to break free from debt other than taking out an IVA and you can find all the information on debt management with a specialist website. Always read the small print of any documents before signing for an IVA agreement and be fully comfortable that the new proposal for repayments is within your budget.
"Initially I applied for a loan to consolidate my debts. However, after speaking to one of your advisors, it became clear that a far better solution would be to go on one of your financial management plans...
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