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IVA UK - Individual Voluntary Arrangements
For those looking at different methods of paying back their debt or reconsolidating it, an Individual Voluntary Agreement or IVA may be a good option.
What exactly is an IVA?
It is an agreement worked out between you and your creditor, wherein you agree to pay them back as much as you possibly can within a period of no more than 5 years (60 months)
There are certain conditions that must be fulfilled before you can qualify for an IVA.
What are these?
- You must have at least £16,000 in debt.
- You should pay back at least 5% of this to your creditors.
- Your income and expenditure has to be within the guidelines laid down by representatives of the creditors (or your IVA could fail. Your IVA is a legal agreement )
Advantages of Individual Voluntary Arrangements:
There are several advantages to be had from such an arrangement. First off, your creditor agrees to wipe off up to your debt.They are also unable to contact you, by letter or telephone, for instance, or take any further action against you. Your interest will be frozen and no charges will be put against any of your accounts, either. Some of the debt types that can be dealt with by an IVA are: unsecured loans, council tax arrears, Inland Revenue, business rates, personal loans to friends and family. You cannot deal with secured or homeowner loans through this method. |
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