Debt is something that can be difficult to talk about. People often do not want to admit there is a problem and this can often make the problem worse. It is important to talk to someone about this who can do something about it so you can discuss the best solution to the problem as soon as possible. A good example of this is Individual Voluntary Arrangements.
An individual voluntary arrangement or IVA is an agreement that is formally reached between you and your creditors. It basically means that you agree to pay all or a portion of your debts over a period of time.
Generally this is a fixed term agreement. Commonly they tend to be between three to five years. The amount of time generally depends on what would be best for your individual circumstances and what you can agree with your creditors. In order for this to be a reasonable agreement you need an experienced practitioner that has been approved and authorized by an accountant or a solicitor.
As the name suggests these are not enforced by a court. They have to be agreed by the creditors. They need to believe that you will be able to repay the payments over a period of time.
You may wonder what the difference is between an IVA and filing for bankruptcy. One of the biggest differences is that if you are bankrupt you cannot negotiate what assets are involved in it. With an IVA there is more room for negotiation. It is also less likely that you will lose your job in this instance than you would if you had to file for bankruptcy.
An IVA is not necessarily appropriate for everyone. It is worth considering who is offering the arrangement. They should talk to you about what they feel is appropriate for your circumstances. You also need to be aware that you will need to be employment at this time and be able to show you can regularly pay off the agreed amounts each month.
When comparing companies that offer Individual Voluntary Agreements it is important to check that the insolvency practitioner drawing up the agreement has been authorized to do so either by a solicitor or an accountant. It is also advisable to look online for customer feedback to see what they thought about using their services. If you want information that is specific to your financial circumstances it is recommended you discuss this with an independent financial adviser before you sign any agreements.
An individual voluntary arrangement or IVA is an agreement that is formally reached between you and your creditors. It basically means that you agree to pay all or a portion of your debts over a period of time.
Generally this is a fixed term agreement. Commonly they tend to be between three to five years. The amount of time generally depends on what would be best for your individual circumstances and what you can agree with your creditors. In order for this to be a reasonable agreement you need an experienced practitioner that has been approved and authorized by an accountant or a solicitor.
As the name suggests these are not enforced by a court. They have to be agreed by the creditors. They need to believe that you will be able to repay the payments over a period of time.
You may wonder what the difference is between an IVA and filing for bankruptcy. One of the biggest differences is that if you are bankrupt you cannot negotiate what assets are involved in it. With an IVA there is more room for negotiation. It is also less likely that you will lose your job in this instance than you would if you had to file for bankruptcy.
An IVA is not necessarily appropriate for everyone. It is worth considering who is offering the arrangement. They should talk to you about what they feel is appropriate for your circumstances. You also need to be aware that you will need to be employment at this time and be able to show you can regularly pay off the agreed amounts each month.
When comparing companies that offer Individual Voluntary Agreements it is important to check that the insolvency practitioner drawing up the agreement has been authorized to do so either by a solicitor or an accountant. It is also advisable to look online for customer feedback to see what they thought about using their services. If you want information that is specific to your financial circumstances it is recommended you discuss this with an independent financial adviser before you sign any agreements.
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