Initiating an IVA
by: stickystebee
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Consumers wishing to seek an IVA are advised to first take time to prepare and secure the appropriate documents that will be needed. They will need to complete an application form as well as provide photo copies of recent bank statements. Once this information has been submitted the consumers will later be contacted by a consultant who will gather further information regarding the application. If the consumer meets the qualifications of an IVA, then they will seek the services of an insolvency practitioner. This person will guide you through the process of obtaining approval for your IVA. The insolvency practitioner will then notify your creditors that they will be acting on your behalf. Usually at this time in intro order is also granted. This prevents your creditors from seeking further legal action against you while the IVA process is occurring.
Once the individual voluntary arrangement is drawn up a meeting is then scheduled. At this meeting the consumer is not required to attend. Instead the insolvency practitioner will be present in order to act on their behalf. Also representatives from all of the consumer's creditors will receive invitations to the meeting. Surprisingly most of the voting actually occurs before the meeting there for many creditors rarely attend.
If the creditors holding a combined total of 75% or more of the debt agree to the terms of the IVA, then it is approved. Once the IVA has received approval the consumer is legally bound to abide by the agreement. After this approval your creditors are prevented to from pestering you anymore so long as you abide by the terms spelled out in your individual voluntary arrangement. Your monthly payments will be one that is reasonable and affordable given your budget.
Article Source: http://www.ArticleStreet.com/profile/stickystebee-6105.html
About the Author
For those consumers seeking assistance with their debt, an individual voluntary arrangement is often an appropriate solution. Also known as an IVA, this option provides consumers with more flexibility and does not produce the detrimental effects of a declaration of bankruptcy. Definitely this option should be considered before ever looking in to the bankruptcy process. Many consumers wonder how they go about initiating an IVA.
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