An Individual Voluntary Agreement (IVA), otherwise known as an Individual Voluntary arrangement (IVA), is a legally binding agreement between you and your creditors that enable you to repay your debts in exchange for a lump sum payment. Under an IVA, the creditors are forced to accept a lump sum instead of continuing to pursue collection action.
Individual Voluntary Agreements (IVAs) can be obtained by using one of several different methods. The key to obtaining an IVA successfully is finding a reliable legal advice provider who can explain your rights to creditors and the benefits that come from employing IVA as opposed to bankruptcy.
A legal advisor can help you determine which IVA would be the most suitable for your circumstances and you should always seek legal advice before deciding upon any debt solution. If you choose to use the services of a financial adviser, you will need to be wary of those that are charging for their service.
Financial advisers often have links with other agencies that can also help you find a suitable plan to settle your debts and this could lead to you paying more than you would have if you had used a different agency. To avoid this you should consider obtaining as much information about IVA plans as you can before approaching a suitable legal adviser.
A financial adviser will be able to advise you on which IVA would be best for you and whether it would be more cost effective to apply to your local insolvency court. They can also help you establish a realistic budget in order to help you set realistic repayment goals. Remember that an IVA may not be suitable for everyone and if you feel that your current circumstances are unsuitable you should seek professional advice before deciding on the right plan.
Your local insolvency court is where you would first apply for an IVA. You would be asked to provide documentation in order to prove that you meet the criteria for the IVA, which would then be reviewed by an advisor. If approved, you would then be required to repay the agreed sum over a period of six to twelve months.
Your chosen adviser can help you to create a suitable IVA plan which includes the costs of setting up your business as well as your repayment plan. This should be followed closely, with any changes to your business structure being discussed fully with your adviser. This is to ensure that you do not become trapped into an overly complex scheme. Once the IVA is approved, you should keep to the agreement terms and follow through with any agreed payment schedule to avoid losing valuable assets.
To secure the success of your IVA, a financial advisor should be consulted, and they should be able to give you professional advice. Only use their services once.
If you are unable to reach an agreement with your adviser to set up the IVA, you will then need to choose a suitable plan that fits your current circumstances. Your selected adviser will then contact you to discuss the details of your choice and the plan that will best suit your needs.
If you find that your chosen consultant cannot help you agree a suitable plan for your particular circumstances, you should consider seeking legal advice from a qualified bankruptcy lawyer. Although a legal adviser may be able to help you decide on the most suitable IVA plan for your needs, they cannot give legal advice regarding whether this plan is suitable or not.
As part of your search for the suitable IVA plan you will be required to provide a wide range of documents and information to allow your financial adviser to work out how the plan can benefit you. The paperwork that you will be required to provide will include financial statements, income and expenditure accounts and other relevant documentation.
By using the services of a qualified professional financial adviser, you will find that you have better chances of reaching an agreement with your creditor than if you were to handle this process on your own. When choosing an adviser, it is important to choose someone with a proven track record for providing IVA services.