What are Individual Voluntary Arrangements?
Individual Voluntary Arrangements, or IVAs are considered as the unique specialized numbers in UK industry of debt.
Besides that of bankruptcy, no other debt management solution is so comprehensively backed through the legislation for protecting the rights for both the creditor and debtor so that the debts could be tackled for the mutual benefits.
Due to which there are specified procedures which is followed for every IVA which has been applied for.
Further reading up on this can be done here.
Making a decision- Is IVA right for you?
Debt could make you wait or feel desperate in finding a way for escaping it. While IVAs could seem attractive, they are not suitable for every individual.
Your special or unique circumstances may make another debt solution for management more suitable or appropriate: but until you interact with any of the expert panel members, you would not be able to know what would be the perfect solution.
Insolvency practitioners are having the most comprehensive and the in-depth knowledge with regards to IVAs, and ideally you need to talk to one of them with respect to it. It’s quite tempting to skip such steps and just go for it (a lot of people do), but imagine how upsetting it could be if the decision ends up in the costing your time and money by paying off the debt than was ever required at the other place.
Another aspect to be considered is that for every part of the process for the IVA, there is the rough evaluation of the assets, and at this point it comes in. At this point of time, your possessions over and above what you are using is assessed on the regular basis, so that the sales could release some funds to your creditors.
It is quite essential and a crucial point with respect to the IVAs. In case you have assets such as jewellery, shares, antiques, expensive cars; your creditors would prefer that you sell those items for releasing the cash for them.
In fact, it could be a key point in the agreement which you have with your creditors; otherwise they could turn down your application in case if they perceive that you are refusing to part with your valuable assets.
Once the Insolvency Practitioner (IP) has evaluated the condition of yours, and they believe that an IVA is the right debt for the management solution for you, you are going to provide them with the go ahead for starting the discussion with your creditors and have come to an agreement on what you are going to pay them.
Who can apply for the IVA?
There are four criteria, based on which you need to finalize your decision.
Those four questions are-
1. $10,000 or more in debt
2. Should have 2 or more creditors
3. Are you employed or self employed, and
4. Do you have the surplus of income of around 125 Euro before you pay your debts each month.