By
[http://ezinearticles.com/?expert=Reethi_Rai]Reethi
Rai,
IVA stands for Individual Voluntary
Arrangement and they specifically help UK
debtors find their way out of debt. Nearly 20
years ago, the Insolvency Act of 1986
introduced the IVA. It is a formal, legally
binding process that allows a debtor struggling
with unsecured debts to make a payment proposal
to their creditors under the guidance of an
Insolvency Practitioner (IP).
Why Is IVA Such A Popular Option In UK
Today?
There are various reasons behind the increasing
popularity of IVA UK. One of the main
advantages of IVA is that it helps
write off a significant amount of your debt.
All your high interest rates are frozen and you
simply make repayments for 60 months and after
that you’re debt free (even if you’ve not paid
off your balance fully). You retain your home,
car and you also get to re-establish you’re
credit rating.
How to Organize an IVA?
An IP will assess your financial situation and
decide on a repayment amount which suits your
requirements. An application form will be sent
to the court for an Interim Order following
which no creditor can take legal action against
you.
For an IVA to be approved a creditors meeting
will be arranged which you are expected to
attend. Your creditors will also be called upon
to vote for or against the IVA arrangement
which has been determined by the IP. If the
creditors vote for the IVA it gets approved
immediately. IVA needs the support of 75% of
the creditors who represent your total debt.
However if 25% of the creditors vote against
the IVA UK the meeting will be suspended for a
later date. Only qualified professionals can
administer an IVA. Off late a number of IVA
firms have sprung up online and they claim to
provide you with the best effective IVA package
which is a true alternative to bankruptcy. So
you can choose to organize you’re IVA debt
solution through a fast and secure online
process.
I Have Made It To My Last IVA Payment, What
Next?
Once you have dealt with your last IVA payment,
your IP (who is also the trustee) will issue a
‘Statement of Completion’ within 3 months of
the last payment of the IVA. You are DEBT FREE
hereafter.
If you have been thinking of setting up an IVA
it is essential to get IVA advice and work with
professionals who are independent. Signing up
for an IVA UK might involve a commitment of up
to five years so it is important you know what
you’re getting into. Free IVA advice ensures
that you have all your facts in front of you
and are choosing the best solution for your
needs.
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Copyright 2008. All
Rights Reserved. Geoff Hibbert T/A Credit Repair
UK.