Things to consider before opting for an IVA in City of London

No doubt IVA has become quite popular as one of the best debt solution for the debt-ridden people in London. It has far less negative impacts when compared to the Bankruptcy, which was considered to be the only solution. But it too has its own limitations and negative impacts. Whether you are in London or in any part of UK, you need to know that IVA is not an all round solution for all people. So before going for an IVA, analyze well the various aspects, consult a professional Debt Solution Agency and make the right decision.

If you are from London and in debt and are in the verge of insolvency and thinking of going for an IVA then wait. Don’t jump into any conclusion at once. See whether you qualify and whether IVA suits you or not. Do your homework first before consulting a professional and see whether you qualify in the below points:
Your debts should be in British pound and it should not be less than £15,000
For an IVA (Individual Voluntary Arrangement) in London you must be a citizen of UK.
There must be at least 3 different creditors to whom you owe the debt.
Your debts should all be unsecured debts.

Have you any property that you want to save from the clutches of debt?
You must have a regular income and your disposable monthly income must be a minimum of £200. If you do have an income but an irregular one, say one month you get more and one month you get nil, then try to derive an average of the income over a period of maximum 5 years. And ensure that you can afford to pay that amount every month. Once, you enter into an IVA, which is a legally binding one, you need to understand that it is binding on you too. So in case, you fail to make the agreed upon payment, legal action can be taken upon you too and a bankruptcy case too can be filed.
You must be in a position to repay at least 25% of your total outstanding personal debt.
See if there are any specific creditors who are internationally behind you to harass you. In such cases, they would work behind the scene to make the IVA proposal a failure.

After taking all these points into consideration and if you are satisfied with it, you can go for an IVA. There are many benefits of opting for an IVA instead of a Bankruptcy in London.
Your insolvency would not be highlighted anywhere in public, neither in London or in any other cities. It is a completely closed-door affair in which the creditors and the debtors know of it. But be aware, it is put on the Individual Insolvency Register and also records are maintained by the Credit Rating Agencies. But the sense of satisfaction is that neither your close friends nor relatives would know of it unless you disclose it to them.
Your assets especially the house is saved from being included in the list that is used to repay the debts.
The existing debts do not grow anymore as the interest rate freezes once an IVA is in effect. So you know exactly how much amount you have to pay.

The creditors cannot harass the debtor in any way for the outstanding dues. They should not even make calls demanding for the money. This is a strict rule of law as an IVA protects the debtor from creditors. Creditors cannot even sue the debtor nor go for filing a bankruptcy against the debtor when an IVA solution in London is in process.
There is no restriction in continuing one’s professional career (like the CA, Law etc), hold public office posts, and if one is a businessman, he can continue his business and retain his directorship or any such post.
You need not repay the entire debt amount. A minimum of 25% of the debt needs to be repaid. And that too in easy and comfortable monthly installments and spanning over a period of 60 months.

If you are in a job, even your boss will not know of it and hence you do not run the risk of loosing your job.
IVA in London is flexible. Meaning that in case, you get to obtain a considerable amount of money from some source (beware no debt can be obtained during this period) then you can make the repayment in one go and write off the rest.
Unlike in Bankruptcy, in an IVA, you can carry on with your bank account. The only restriction is that you cannot avail over-draft facility.

Once your debt period is over and you have paid the agreed amount, the rest of the debt is written off and you are considered to be a debt free person. You can now be like any normal person and can even go for getting new debts.
The debtor can avoid the awkward position of facing the creditors directly as it is the responsibility of the Insolvency Practitioner, who is appointed as the Nominee and then as the Supervisor (once the IVA is into effect), to communicate and coordinate with the creditors. Even the monthly payment has to be made to the IP who in turn will be distributing it to the creditors.

So think wisely, analyze deeply and act intelligently and get rid of your debts and be a free man.
Have a quick look at the Debt Management services in London., 1, Webb's Rd, London, SW11 1XJ, Tel: 0800 0076724

Perfect Credit Solutions, 10 The Shrubberies, George Lane, South Woodford, London
E18 1BD, Tel: 020 8518 8202

The Sales Finance Corporation Ltd, 17, Wool Rd, London, SW20 0HN, Tel: 020 8946 8556

Stephens Financial Consultancy, Flat 6, 14, Fermoy Rd, London, W9 3NH, Tel: 0845 2990148

Perfect Solutions, 262, Hoe St, London, E17 3AX, Tel: 020 8509 6280

IVA Direct, 10-12, New College Parade, London, NW3 5EP, Tel: 020 7722 1811

4life Debt Management Ltd, 31, Finchley Park, London, N12 9JS, Tel: 020 8446 2277

TT Financial Services, 8-20, Well St, London, E9 7PX, Tel: 020 8986 7499

Castlegate Debt Solutions, Unit B105, The Business Centre, 5, Clarendon Rd, London,
N22 6XJ, Tel: 020 8881 6688

Help My Debt, 5, Durham Yard, London, E2 6QF, Tel: 0845 2263248

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