Criteria for qualifying for an IVA in Stoke-on-Trent

The city of Stoke-on-Trent, shortly known as the Stoke city in Staffordshire in England has a majority of the people suffering from unimaginable and unmanageable debts. And there is continuous rise in the number and many Debt Solution Agencies are working overtime to put up with the demand for advice and guidance to these residents.

And like any other debtors, people of Stoke-on-Trent struggling with debt too are required to be given the best solution. As these people are more into unsecured debts like the credit cards and other such debts the most suitable solution would be the IVA (Individual Voluntary Arrangement). An IVA in Stoke-on-Trent will help them to come out of the debt in a much easier and affordable way without risking their image and their credit rating.

An IVA is a financial solution introduced by the government of UK especially for those people who have not too huge an amount as debt and who can repay a considerable amount of it to clear their debts. For this the debtor has to fulfill certain criteria.

  • If the debtor is in Stoke-on-Trent then he has to have a minimum of £17,000 as outstanding debt.
  • He must owe this amount to at least three different creditors.
  • He must be having a regular income. (Because from this income only a portion has to be set aside for the repayment of debts). In case he has a fluctuating income, he should first make sure he can set aside an average minimum amount even during his lean period. This is essential to make the IVA a successful proposal till the end.
  • He must be able to set aside a minimum of £200 as disposable income, which he can put in to repay the debts.
  • Must be able to make a repayment of minimum 25% of the total debts that he owes.
  • Based on all the above and looking to the financial condition of the debtor, the IP has to provide a positive Nominee Report which plays a crucial role in getting the IVA approved by the creditors and from the court too.
Once the criteria are met, the IP (your insolvency practitioner in Stoke-on-Trent) fills up the standard application form for the IVA with the necessary terms and conditions of payment, time period etc. The reason for not being able to make the entire payment and the situations there on would be mentioned. The debtor has to sign and approve it and the IP is in charge of placing it before the court of law, which then verifies the genuineness of the debtor and his situation and when it is satisfied it endorses the IVA application. Now the first stage is crossed successfully.

The second step is to inform the creditors about the IVA proposal, its conditions, and a copy of the endorsed application along with all the necessary annexure are sent to all the creditors to go through and decide about the IVA. They are given a period of 15-21 days to analyze the IVA. A date is then fixed for the Creditors Meeting, which is chaired by a Chairperson. The debtor and also the IP are to be present there to provide the needed clarification if any, make any modifications on the request of the creditor and sit for a detailed discussion. Once everything is discussed and sorted out, the creditors final opinion is sought. If all of them agree to it, then the IVA is considered passed. But if there is difference of opinion a voting is done. The creditors can either vote in favor or against it. But they also have another option i.e. of remaining neutral. Then the entire voting is counted. If 75% of the total creditors vote in favor of it, the IVA considered implemented. The second stage is successful.

Now comes the third and most crucial step. The debtor has to make the monthly repayments very regularly. This is very much required to take the IVA to the completion stage. The debtor is supposed to make the payments to the IP and not to the creditors directly. It is the duty and responsibility of the IP to further make the payments to the creditors at an individual level. This he will do on a pro rata basis i.e. based upon the amount the debtor owes to a creditor, his share of the payment will be decided. If he owes more to a particular creditor, that creditor will get more amount as repayment every month i.e. to say that the amount will not be distributed among the creditors equally. If the debtor makes all the installments as agreed upon he has successfully crossed the third and final stage.

Then a report to this effect would be sent to the court, by the insolvency practitioner, along with all the details of payments made and supporting annexure. The court then verifies the same and provides a Completion Certificate which is a legal document proving that the debtor has cleared the debts. Whatever leftover debt remains would be written off and will not be reflected in the debtors report. So he is now completely out of the clutches of debt and is a clean, free person who can start his life afresh in a much better way.

For any such debt advices in Stoke-on-Trent you can get in touch with any of those Debt Solution Agencies or Helplines operating in Trent.

rian Alcock & Associates, Eversleigh House, 497 Etruria Road, Basford, Stoke-on-Trent ST4 6JJ. Telephone: 0800 3282409

Dunion & Co. Insolvency Practitioners, Genesis Centre, North Staffs Business Park, Stoke on Trent, Staffordshire ST6 4BF, Tel. 01782 366040. Can also get in touch and for online enquiry check at http://www.dunionandco.com/enquiry.asp

The UK Insolvency Helpline is an online helpline that can be contacted over telephone at at 0800 074 6918 or at http://www.insolvencyhelpline.co.uk/debt_advice_uk/stoke-on-trent.php

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