How do I start an IVA? Steps involved

The answer to all of your personal debts could be an Individual Voluntary Arrangement (IVA), a well-known and legal method for debt management. This is one of the solution through which you will find yourself diligently handling your personal debts much considerately.

There are many important benefits associated with an IVA; not forgetting all of your interest charges and other fees will be frozen on your debts, and a major portion of your debt could be written off.
However, like every legal formality, this agreement also needs to be implemented with due care.

IVA Step One

Step One requires you to first analyze the implications of an IVA and whether you really need it and if you fit the requirements. For this, you must research about IVAs, its methodology and pros and cons. Take a look on what its customers have to say about it.

Seek an expert debt advisor’s advice. Proposing your IVA to your creditors would require you to engage an Insolvency Practitioner (IP), who will be recommended by your debt advisor or IVA firm.

IVA StepTwo

Step Two involves you to present all your financial details in the form of a statement of affairs document highlighting your earnings, living expenses, your assets and your debts.

Your IVA living expenditure budget will help determine your amount of repayment you need to make into your IVA every month.

You can seek your debt advisor’s help in assessing your IVA living expenditure budget.

IVA Step Three

Step Three is to do all documentation work including your IVA proposal that will serve as a formal legal document detailing your financial circumstances and your proposed amount of repayment that you will make to your creditors in your IVA.

Prior to this, submit your financial information including statements, debt balances, salary slips, past business accounts, and bank statements.

IVA Step Four

Step Four involves a meeting with your creditors to discuss your IVA proposal for reviewing. The creditors, if they need, will propose some changes to the proposal that you need to discuss with your IP.

In the absence of a consensus, a different debt management solution may be chosen.

IVA Step Five

Step Five is the final stage when your IVA proposal is accepted and it becomes legally binding on both the parties.

Thereafter, you become obliged to follow the IVA terms, the successful functioning of which can write off your remaining debt amount.

To lear more about IVA qualification requirements read this article.

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