Debt Solutions – IVA
Though some people would rather bury their heads in the sand and see how things will turn out, I seriously suggest that when it comes to debt, you should seek out help and study your options. Our nation may be one of debt, but there is a solution to everything, if only we would exert that extra effort needed.
In the UK, there are several ways of dealing with debt – most of them designed to bail out individuals who are in serious trouble. One of the simplest solutions to debt is an IVA, or Individual Voluntary Arrangement.
An IVA is basically a legal process which allows an individual to settle his unsecured debts with his creditors through a formal proposal (originating from the debtor). An IVA keeps an individual from resorting to bankruptcy. An IVA is ideal for individuals whose debts do not exceed a total of £15,000 distributed between 3 creditors.
How does it work? If you are the debtor and you want to have an IVA, you need to come up with a workable proposal – satisfactory to both you and your creditors. You have to engage the assistance of a licensed Insolvency Practitioner for this. The IP will al so be the one to convene a meeting of your creditors, who will then vote whether to accept or decline your proposal. You only need 75% of your creditors to vote positively for the IVA to be legally binding.
The best thing about an IVA is that once you have completed it, your outstanding debt will be written off, allowing you to start with a clean slate all over again!
