IVA to write off credit card debt in Lincoln

Lincoln, the county town of Lincolnshire has an alarming 97% population of credit card holders who are struggling to write off their credit card debt. While it was an easy way to use while the financial status was at its boom, today it has become a real headache that is giving sleepless nights to the credit card owners. They are struggling hard to get rid of this and not finding a way to come out.

For them, the best possible way of writing off the credit card debt is through an IVA. IVA (Individual Voluntary Arrangement) has been introduced in Lincoln by the UK government with the motive of lending a helping hand to those debtors who have fallen deep into the clutches of the unsecured loan. And the topper of the loan is none other than credit cards. The most alluring debt trap is the Credit Card with attractive schemes and high hidden costs, which many are not aware of.

An IVA in Lincoln is a solution that most credit card companies would accept gladly, given the current financial crunch all around. Where there is no hope of getting little or no money back, there if the debtor comes up with a IVA, a commitment that is a legally binding one and offers to make the maximum possible repayment, the Credit Card companies are surely not going to let this chance down. But yes, they may go for a negotiation for a little higher than the mentioned amount but still the deal would be worth it.

Under what circumstances would an IVA in Lincoln be initiated?
IVA would be effective in such cases where the unsecured loan amount is £15,000 or above.
The debtor is not in a position to repay the debt.
The debtor has a regular income and can afford to set aside a minimum of £200 per month as disposable income towards repaying his loan.

Why this is effective?
It is so because it is a legally binding agreement between the debtor and the creditors.
The creditors had no hope of getting back even a small percentage of the debt. But now with Individual Voluntary Arrangement it becomes a big commitment for the debtor to repay it.
They stand a chance of getting back more than the amount they would have expected to get back when the person is declared a bankrupt. So this is a bonanza for both the debtor (as his insolvency would not be declared publicly) and the creditor is also at advantage.
The debtor can check the ever-increasing interest rate that accelerates the debt amount, once the IVA comes into effect and is effective till the time period the IVA is completed. So the debtor would not be over burdened.
He need not make the entire debt payment in one go. He can pay it in regular monthly installments over a given period of time (and this is set at a maximum of 60 months).

How an IVA in Lincoln is processed?
As it is a legal proceeding, it should be done through a Licensed Insolvency Practitioner in Lincoln. First of all the debtor has to seek his advice and provide all the necessary financial information, the list of creditors and the total unsecured debt amount for which the IVA is initiated.
The IP then analyses and calculates the disposable income that can be set aside for the debt repayment and the period through which it can be done and based on this the total maximum amount of debt that can be repaid. (The debtor can get an exemption of up to 75% of his personal debts written off). The proposal is then drafted and the debtor signs on it. The same is submitted to the Lincoln Court for approval. Once approved, the copy of the proposal along with details and schedules are sent to all the creditors and so also a date is fixed for the creditors to attend the ‘Creditors Meeting’ in which the proposal is analyzed, clarifications sought (debtor needs to be present to provide clarification) and voting is done. When 75% of the creditors cast a vote in favor the IVA becomes approved and the legalities begin to be effective. It is binding on those who haven’t voted or voted against the proposal.

A report is prepared to this effect and sent to all the creditors along with the details of the meeting and modifications, if any, made in the proposal in the meeting, The IP who has been the Nominee till this point, will act as the Supervisor. He will keep track of the debtor’s payments, his income & expenditure and ensure that he follow the rules of the IVA contract. An annual review is made and report prepared and circulated between the debtor and all his creditors.
When the debtor makes the payments regularly and completes the agreed upon time period, a final report is prepared and sent to the court, which then reviews and gives a ‘Completion Certificate’ and the same is informed to the Credit Rating Agencies and updated in the Individual Insolvency Register. And once done, the debtor is cleared of all the debts and becomes a free bird.

In case you need further assistance you can call upon any of the Debt Advisories in Lincoln of which some are detailed below:

CRG Financial Recovery Ltd, Greetwell Place 2 Limekiln Way, Lincoln, LN2 4US, Tel: 0845 8065547

CRG Insolvency & Financial Recovery, Greetwell Pl Lime Kiln Wy, Lincoln, Lincolnshire, LN2 4US, Tel: 01522 524103

Bridge McFarland, 3-9 Tentercroft Street, Lincoln, LN5 7DB, Tel: 01522 518888
For online help log on to http://www.insolvencyhelpline.co.uk/debt_advice_uk/lincoln.php or call The UK Insolvency Helpline at 0800 074 6918

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