Chances of IVA rejection in Leeds

Once you are in serious debt, it is better to get advice from experts in debt management to effectively manage your debt. There are many options available to manage your debt depending on your current financial situation. IVA or Individual Voluntary agreement is a very good option available in Leeds to manage your debt and become completely debt free in a period of 5 years. It is the best option to get out of debt without having to worry about any legal actions and also without keep accumulating other finance charges and penalties.

IVA is a great way to get final settlement from debts with chances of some of the debts being written off by your creditors if you follow the IVA through its term diligently. It is in many ways better than bankruptcy with the greatest advantage being that you can protect your home being absolved by your creditors. There is also the matter of privacy that is available in IVA unlike bankruptcy. When you are declaring bankruptcy, you are supposed to declare through gazette notification in Leeds. There are no such restrictions when you are in IVA and also you are under no obligation to inform your employer about your current financial situation unlike in bankruptcy. IVA is your biggest chance to get your debts written off and to move on with your life.

There is a certain procedure involved in getting the IVA set up in Leeds. For IVA to be initiated, your debs should be over £15000. If the debt is amount is below this then there is chance of your IVA to be rejected not just in Leeds but anywhere in UK. Another criterion is that you should be owing debt to at least three different debtors and also that you should have a steady monthly income. If these criteria are not satisfied, it is highly likely that your IVA is rejected in Leeds. It is also mandatory that 75% of your creditors approve the repayment plan put forward by the Insolvency practitioner. There is always a chance of rejection of your IVA if your creditors do not approve. There are many debt management companies in Leeds that have helped many people who are eligible for IVA to be debt free.

Once you approach an IVA firm or independent Insolvency Practitioner in Leeds, you will be required to furnish all your financial records including your assets and income from all sources. You need to set up the IVA only through a licensed Insolvency Practitioner to make sure that it has legal validity. You have to give a statement from your creditors stating the amount you owe them and it is best for your own sake that you list all your debts. The practitioner will analyse your financial records and all of your debts. After careful consideration, he will lay out a plan that gives you the payment options for all your creditors. A meeting will be called in Leeds with all your creditors and there will discussions and negotiations with them by your practitioner on behalf of you. If 75% of your creditors agree to the proposal, your IVA will be effective. There will be certain amount of debts that will be written off, but you will have to adhere to the plan for the full term, usually 5 years without fail for that to happen. If it works out as planned, it is your best solution for all your debt problems and you can be totally debt free after 5 years.

You have to remember that it is not an easy way out and the creditors will definitely try to get compensated from you as much as possible. If you own a property in Leeds, even though you are not required to sell it, you might be required to release equity from it so that the creditors get the maximum possible benefit. The IVA can only be started when your creditors agree to the proposed IVA plan. There is always a risk that you do not get approval of the required 75%. If your IVA gets rejected for some reason, your practitioner will reassess everything and come up with a new plan, but if it gets rejected again then you will have to explore other options to manage your debts or approach a different firm as there are many such firms in Leeds and you could get lucky with a new proposal from a new company. In any case a good Insolvency Practitioner will be able to advise you properly regarding your other options in case your IVA gets rejected.

Resources:

1. Chamberlain & Co provides IVA help and are located Chamberlains & Co, Aireside House,
24/26 Aire Street Leeds LS1 4HT and can be contacted 0800 195 4585. More details can be found in their website http://www.chamberlain-co.co.uk/Chamberlain_co/

2. Geoffrey Martin & Co provides consultancy in IVA and is located in St Andrew House | 4th Floor 119 - 121 The Headrow | Leeds LS1 5JW. They can be contacted at 0113 244 5141. Visit http://www.geoffreymartin.co.uk/ for more details.

3. Carrick Read Insolvency provides IVA help and is located in 12 Park Place, Leeds LS1 2RU and can be contacted at 0113 246 7887. Check http://www.cri.co.uk/ for more details.

Post a comment