Individual Voluntary Arrangements in Our Economy
by: stickystebee
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One quite agreeable choice may be an IVA - Individual Voluntary Agreement. This is a formal, binding legal agreement between yourself and your creditors whereby a mediator reaches an agreed upon amount of money you will repay over a specific time period. Simple? Yes. Somewhat. There are qualification requirements that one must meet in order to proceed and the whole lot is handled by an Insolvency Practitioner (IP).
The question is, do you qualify? You must have £15,000 in debt to 3 or more different creditors. Okay, brilliant! Here's how it works. The IP will contact your creditors to arrange the agreement. If 75% of the creditors agree to proceed, then they all must go ahead with the arrangement. The IP will handle all the negotiations and set the action in motion. Usually, the term is 5 years, depending on the debt involved. Often, you will end up writing off 65% of the total debt.
Keep in mind that when you opt for the IVA, you must include all your creditors. The benefit is, of course that you will have one payment that goes to the IP and he will disperse payment for you. Your credit rating will improve as well. This is a better mark than bankruptcy. Future lenders will see that you accepted responsibility for your debt and took action, putting you in a better light long term.
The Individual Voluntary Agreement is increasingly being chosen as UK feels the tightening grips of the economic squeeze come to bear. But regardless of your professional status, the IVA will not, cannot affect your job and you qualify notwithstanding your title.
Take action now and consult a debt management professional. They are available to answer your questions.
Article Source: http://www.ArticleStreet.com/profile/stickystebee-6105.html
About the Author
The economy - everyone is tired of hearing about it. But if you are one of the thousands of Brits who are feeling the crunch of an economy that is closing in from every direction, then it's something you may need to talk about with a professional. If your financial situation has you questioning your future, now is the time to look at your options. One quite agreeable choice may be an IVA - Individual Voluntary Agreement. This is a formal, binding legal agreement between yourself and your creditors whereby a mediator reaches an agreed upon amount of money you will repay over a specific time period. Simple? Yes. Somewhat. There are qualification requirements that one must meet in order to proceed and the whole lot is handled by an Insolvency Practitioner (IP).
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