All You Need to Know About IVA’s
The IVA is an individual voluntary debts relief programme introduced by the Government in 1986 to help people who owe more than £15,000. This is a five year contractual period wherein an arrangement between the consumer and their creditors allows debts to be paid without the harassment of creditors. The consumer is debt free if they honored the agreement.
The consumer does not have to pay any fees. The debtor’s effort is managed by Insolvency practitioners and their fees are not paid by the consumer.
The IVA has important advantages with one huge advantage being the consumer can keep their house. This debts relief programme often requires the release of some of the home equity. This specific question needs to be asked of an insolvency practitioner which is trained to work with this question.
Some advantages of the IVA are: 1) Once the IVA is agreed, creditors by law can no longer demand payments; 2) Legal action against the consumer is prohibited; 3) Interest and late charges cannot be added to the total debt; and 4) The IVA is a private arrangement.
All creditors must be included in the IVA and credit will not be obtainable during the period of the IVA.
The IVA debts relief arrangements are managed by insolvency practitioners who are trained and they are held to a strict code of professional conduct.
The consumer cannot find better protection from debt worries and collector harassment than that provided by an IVA. It tops bankruptcy because it does not hurt the credit rating nearly as much. Another advantage is it allows the consumer to feel good about paying off their debts.
Unlike bankruptcy, this programme is not published for all the UK to see. The degree of privacy is much better.
Consumers fear this programme will hurt their credit, but it will not hurt it as much as ignoring the debts will. Bankruptcy is the nuclear bomb to the credit report.
Local credit will not be available and life begins on a cash basis. Over a period of time, however, credit is again obtainable. The programme is a win-win.
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