Individual Voluntary Arrangements – Where Do You Start?

Your debts are out of control, and you have decided that an individual voluntary arrangement (IVA) is the best solution. Before entering into an IVA, you may have many questions about the process. It’s important to learn as much as possible about what an IVA entails before entering into one.

You will need to find an insolvency practitioner to supervise your IVA. Most companies of this sort will give you a free consultation, where they will assess your financial situation to determine if an IVA is best for you. Once you have decided to go ahead with an IVA, the insolvency practitioner will prepare a proposal that will be given to all of your creditors. Most creditors will agree to an IVA, since they see it as a way that will guarantee that they are paid money, when otherwise they might not be.

You will have to pay a fee to the supervisor for overseeing the process of the IVA. The fee will be determined as part of the terms of the IVA. It will come out of the total amount that you pay to your creditors, and it will be an amount that is agreed upon by the creditors.

The IVA will involve agreeing upon a set monthly amount that is fair to both you and your creditors. You will agree to pay the set amount to the supervisor each month without fail until the agreed-upon amount has been paid and your debts have been settled. Failure to pay your monthly payment can result in your being declared bankrupt.

With an IVA, your primary obligation is to make your payments as agreed upon. As long as the payments are made, you will have peace of mind, knowing that your assets are safe.