What happens when my IVA ends in London?

IVA or Individual Voluntary Agreement is a very effective and manageable debt management solution available to individuals and small businesses. It was initially launched by the government to help out small businesses but was later amended to include help for individuals as well.

London being the capital city of UK has people from all economic backgrounds. For people who are in serous debt troubles, IVA is a very good option available to all those in UK including those who live in London. It is usually set up by an Insolvency practitioner in consultation with your creditors and will come effective only if you get 75% of them to agree to the repayment plan set up by your Insolvency Practitioner. IVA is a valid and legal set up if it is set up by a licensed practitioner. There are certain eligibility criteria that should be met to get the IVA initiated.

These are that your debt should be over £15,000, you should have a minimum steady monthly income that can contribute to the IVA and that you should owe your debt to at least 3 different creditors. If you stick to the IVA plan, which usually is set up for 5 years, you not only will be debt free, but also any remaining debt at the end of 5 years will be written off by your creditors. It is the best mechanism to be debt free without having to worry about legal actions from your creditors or other finance charges getting accumulated. The usual misconception about IVA is that all your monthly income will have to be contributed to the IVA. But the fact is when your insolvency practitioner set up the IVA, there will definitely be provisions left for your basic living expenditure in London including the mortgages that you may have. This is the reason IVA is a better option than bankruptcy to save your property in London as well.

Once you complete your IVA in London after 5 years or in some cases sooner, you will be issued a certificate which says that you have successfully completed the IVA term and is debt free from all those creditors. If you are committed to get yourself out of debt, it is not that difficult to complete an IVA, because it is just 60 payments in 5 years. After you have made your last and final payment, there will be certain procedure to be completed before you are issued the completion certificate. Your Insolvency practitioner and your creditors will make sure that you have made all the payments without fail, you have released any equities that you were supposed to pay to the creditors, and any dividends that you were supposed to be made to the creditors are also done. After all these are verified you will be issued with the certificate that says you do not owe anything to any of your creditors and you are completely debt free in London. This protects you also from any further legal action that could have brought up by any of your creditors for any remaining debts. Your credit score at the credit bureau will start to improve after a year and you can begin to lead a normal life without any debt problems.

Usually the IVA ends in London after 5 years, but it is possible to end it earlier if you need or choose to do so. There is a certain procedure that you need to follow to end your IVA earlier than agreed in the initial proposal. If there is an increase in your income during the period of your IVA, you should notify your IP about that. Your IP will in turn work out a new payment plan which needs to be approved by your creditors and you will be paying more money to your creditors monthly which will help you end your IVA earlier than 5 years or the time set in the initial proposal.

You might get lucky and win a lottery or able to manage some money from third party or even get your inheritance. All these could help you end your IVA early. You are supposed to notify your IP of any such acquisition of wealth and he would have to work out the IVA according to that. Any such payments that you make to your creditors has to be done only through your insolvency practitioner in London. The IVA is an agreement that is binding legally and any changes to it will have to be done only through proper channels to retain its validity in London.

1. BN Jackson Norton is specialist insolvency practitioners located at Gray's Inn Square
Gray's Inn, London, WC1R 5AA. They can be contacted over phone 020 7405 3000. Visit http://www.bnjacksonnorton.com/ for more details.

2. Carter Clark Financial Recovery provide IVA help for those facing financial difficulties and are located at Meridian House, 62 Station Road, North Chingford, London, E4 7BA and can be contacted at 020 8524 1447. Visit http://www.carterclark.co.uk/ for more details.

3. David Rubin & Partners LLP specializes in insolvency help and is located at 26-28 Bedford Row London, WC1R 4HE and can be contacted over phone at 020 400 7900. More details can be found on their website http://www.drpartners.com/


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