Detailed information on IVA for residents of Lancaster

Lancaster city is like any other city in England where people are fighting hard against the financial difficulties. In the process of keeping up with the pace of the world, knowingly or unknowingly, many have entered the vicious trap of debt and are now groping to find a way to come out of this burden. Most of them would be having sizeable amount of unsecured debts, as they would have borrowed money thinking that they would be repaying it soon. But situations would have not turned to better because of which they couldn’t repay it. If you were thinking of going for bankruptcy, then you would find that your debts are not so huge to declare yourself bankrupt. And in that situation you are risking so much – your status, assets, professional career, business, credit rating et al. So, how to come out of this situation? This is the big question that is hovering in many minds.

The solution comes by way of IVA in Lancaster (Individual Voluntary Arrangement). The government has specifically introduced this scheme with the purpose of bringing out such people from the clutches of debt. It is a legally binding agreement in which the debtor comes forward to repay the maximum possible amount towards clearing the debt but not at a time. He is given the facility to repay in small monthly installments. To initiate the process of IVA, a Licensed Insolvency Practitioner is to be sought and appointed who will take the necessary steps.

He will first analyze the financial situation of the debtor for which he will take into account, his assets and liabilities, his total debt, the list of creditors, his required minimum living expenses, what disposable income will be left over etc. Once the calculation shows that the person is fit for entering an IVA, he informs the debtor and prepares an agreement to this effect. The debtor then signs it and returns it to the IP who produces it before the court for obtaining an Interim Order. Then he distributes a copy of these to all the creditors. These creditors then sit together on a given date and come up for a decision. If there is no unanimity they go for a voting and if 75% of them vote in favor to it then it is considered as successful and IVA becomes effective.

And then the payment period begins. The debtor, unlike normal procedure, makes one single payment every month to the IP. This is the amount that has been calculated and agreed upon by the creditors. The IP then makes the individual payment to the creditors according to the amount of debt owed to each creditor.
And the process continues till the stipulated period of time (which is a maximum of 60 months). Once this payment is complete, the IP informs the court who then issues a completion certificate. The IP then sends a copy of this certificate to the Credit Rating Agencies who had initially recorded the IVA initiation in their records against the debtor’s name. Based on the Completion Certificate, these Agencies update the status as ‘Completed’. This will remain on record for one more year and then the debtor is eligible for further debt.
But in the meantime, in case the debtors’ situation improves and he gets some extra disposable income in hand, he should inform it to the IP who would then calculate it and add it in the debtor’s repayment structure so that the creditors are able to get back some extra amount of their debt.
And on the contrary, if the debtor’s situation worsens, say by way of loosing his job, or loss in business etc. and not in a position to repay the agreed upon amount, then he needs to inform the IP regarding this. The IP will then call up the creditors for a discussion and inform them about the situation and request for a amicable change in the agreement.

There are many benefits if you go for an IVA in Lancaster.
The most important advantage is that your insolvency would not be made known to all. Unlike bankruptcy where it is published in the newspapers, in IVA it would be kept as a very confidential affair.
You need not have to pay the entire agreed upon amount at a time. One gets ample time period (maximum of 5 years) to slowly repay the debt. This will help in not burdening the debtor more.
Since it is a legally binding one the creditors have to abide by it once it comes into effect. And further more, they cannot sue against the debtor for getting back their debt. They cannot even go for any legal action against the debtor as long as the debtor makes the agreed upon payment, regularly.
The debtor’s home will not be calculated while going for the IVA
Up to 75% of your debt can be written off as bad debt.

You can carry on with your usual career life. No restrictions on your professional career, business, holding public offices positions etc.
For further clarification, you can get in touch with any of the local Debt Advisory Agencies that have offices in Lancaster or any other online agencies who can offer you a proper guidance. Below are some who operate in Lancaster

J M Marriott, is an IVA firm that is having its physical office in Lancaster at 14 Queen Street, Lancaster, LA1 1RS UK, Tel: 01524 34838, F: 01524 36140 or contact them over mail info@jmmarriott.co.uk. For more information log on to their site at http://www.jmmarriott.co.uk

Clear Insolvency is also an online debt service helpline that extends its services to the city of Lancaster. They can be contacted at 0208 144 2947 and for further details log on to http://www.clearinsolvency.co.uk/

The UK Insolvency Helpline is a National Helpline that covers the city of Lancaster too. They can be reached at 0800 074 6918. And in case of further details and clarifications check out at http://www.insolvencyhelpline.co.uk

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