Get out of debt with an IVA in Salford

If you are in serious debt and you want to avoid bankruptcy then the only better option with a decent exit from the debt would be going for an IVA in Salford. Though it is also Insolvency the effect there on and afterwards is comparatively less than Bankruptcy. This idea is getting famous and aware is spread across Europe including Salford. The major plus point of an IVA is that it is not shared in public. Only the debtor and creditors know of the debtor’s situation. And moreover, once put into operation it is legally bound on both the debtor and the creditors. The city of Salford has reasons to be in joy as the debtor is not forced to pay all the debts, he is allowed to pay the maximum that he can afford and that too in small easy monthly installments. The rest of the debt amount doesn’t hover upon him because once the IVA period is complete, the remaining amount is wiped off and the debtor is now completely clean of debts.
Isn’t this a very good solution with the least effects for people of Salford?

Now let us see in detail about an IVA in Salford, who is eligible, what its benefits are, and how it is processed.
IVA or the short form of Individual Voluntary Arrangement is an offer put forth by the debtor to repay the maximum possible amount towards his creditors. This occurs when the debtor is not in a position to repay all the debts. Not all of them can go for an IVA. A person who has a minimum of £15,000 as unsecured debt that he owes to three different creditors
Who has a regular income and after deducting his minimum living expenses can afford to make a payment of a minimum of £200 per month.

Once you know that you fulfill the above criteria you can approach an Insolvency Practitioner who would acts as your Nominee. He will study your financial status and if he is satisfied that your case is genuine and that you can go ahead with an IVA he will prepare a ‘Nominee Report’ with a positive note. This would give a reliability aspect on the debtor’s offer. Based on your income, basic expenses required to lead a decent life, the total outstanding debts, assets etc he would derive the amount that you can afford to pay every month towards your debts and also the period for which you can make this payment. The total of this will bring you to the final amount that you will be able to pay off during the said period of time.

Remember, to make an IVA in Salford successful, this amount matters a lot. It should be a minimum of 25% of the total and something more than the amount that could have been recovered if you were declared bankrupt. By this way it stands a higher chance of being voted in favor of it.

The debtor has to sign the report thus prepared and the IP takes it to the court for its official approval. If the court is satisfied with the report it gives its consent and copies of it are made and distributed to the creditors for their information and necessary action that is to be taken after 2-3 weeks. A date is fixed to decide the fate of the IVA. The creditors meet on that date, discuss on it, ask for clarifications if any, request to make certain amendments, and finally a consensus is arrived at. If all do not agree to it, a voting is held and if 75% of the creditors vote in favor of the IVA it becomes effective and a report to this effect is drafted and sent to the court for information and records.

The debtor then has to make the payments as mentioned in the IVA. He should not make payments directly to the creditors but to the IP who will then pass it on to the creditors depending upon the amount each has to receive.
When the debtor successfully makes the payment for the agreed upon period, a final report is prepared and sent to the court along with the necessary documentary proof. The court then verifies and issues a Certificate of Completion. Once the certificate is received the IP has the responsibility to inform the Credit Rating Agencies too who will make necessary updates in the Individual Insolvency Register of the debtor. The rest of the amount is wiped off from the records of the debtor. Finally the debtor comes out fully clean of any debts.

There are many benefits if IVA in Salford is opted for.
The debtor need not put his status at stake. The matter will be confined within him and his creditors. Even his immediate relatives and friends will not know of his Insolvency.
Once IVA is into effect, it is legally binding on the debtor as well as creditors. So the creditors cannot change their mind later on or refuse for the agreement at a later date.
Also they should not contact the debtor for their pending payments and inflict any type of torture to the debtor. They cannot even take any further legal action like filing bankruptcy case against the debtor.
The interest rate comes to a halt once IVA comes into action. Only the amount till that date will be calculated. No further interest rate can be levied on the said amount.
To help the residents of Salford to come out of their debt burdens many Insolvency Practitioners and IVA Firms operate throughout the city. Below are a couple of them.

Crawfords, Stanton House, 41 Blackfriars Rd, Salford M3 7DB, United Kingdom
Contact No. 0161 828 1000
Freeman Jones, Carlton House, Vere St, Salford, Greater Manchester M50 2GQ, United Kingdom Tel. No. 0800 970 7725

And along with this there are online help agencies too. Visit / contact any of them to get the right advice.
The UK Insolvency Helpline is a leading Helpline in UK that has its team serving the people of Salford too. They can be contacted at 0800 074 6918. See through their website for more details at

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