Protect Your Assets With an IVA
One more advantage of entering into an IVA is being assured that you can pay off every one of your creditors while protecting your assets in the process. It can be quite stressful to know and be reminded everyday of how deeply indebted you are, thinking of what the best way there is for keeping your property safe from repossession. This type of situation will not be avoided by continuing to dismiss notices for debt settlement or by opting to file for bankruptcy and giving up entirely on rescuing your finances.
The crucial first step is to get adequate debt advice and have an IVA expert go over your current financial situation. You will need to prepare documents that will help ascertain how much debt you are really in and what alternatives there are for you to manage it more effectively. All sources of income must be declared, along with every asset you have acquired over the years. You will not be considered for an IVA if your total debt falls below 15,000. Note that only unsecured loans or credit will be included in the arrangement. Mortgages and other secured loans will be computed against your income and payments for those will be identified as necessary expenditures. Whatever is left of your income will determine how much money your creditors will be offered as settlement for everything that you owe. You will be tasked to submit a single payment each month throughout the following 3 to 5 years. Since IVA's are essentially legal documents, you and all of your creditors will be held responsible to follow its terms once it gains approval in court. Banks and lenders cannot seek to repossess any of your properties within the duration of the arrangement's effectivity, provided that you are not falling behind on the defined payment schedule.
An Individual Voluntary Arrangement is certainly not for everyone, although it would not hurt to look into it as a viable option before deciding to declare bankruptcy and have your assets liquidated in no time. Choose a different debt management plan if you feel as though an IVA is not the best thing for your circumstances, so long as your credit history gets cleared in the end. You may be surprised at how much easier you can get out of debt with everything you have invested in kept safe and still under your ownership.
The crucial first step is to get adequate debt advice and have an IVA expert go over your current financial situation. You will need to prepare documents that will help ascertain how much debt you are really in and what alternatives there are for you to manage it more effectively. All sources of income must be declared, along with every asset you have acquired over the years. You will not be considered for an IVA if your total debt falls below 15,000. Note that only unsecured loans or credit will be included in the arrangement. Mortgages and other secured loans will be computed against your income and payments for those will be identified as necessary expenditures. Whatever is left of your income will determine how much money your creditors will be offered as settlement for everything that you owe. You will be tasked to submit a single payment each month throughout the following 3 to 5 years. Since IVA's are essentially legal documents, you and all of your creditors will be held responsible to follow its terms once it gains approval in court. Banks and lenders cannot seek to repossess any of your properties within the duration of the arrangement's effectivity, provided that you are not falling behind on the defined payment schedule.
An Individual Voluntary Arrangement is certainly not for everyone, although it would not hurt to look into it as a viable option before deciding to declare bankruptcy and have your assets liquidated in no time. Choose a different debt management plan if you feel as though an IVA is not the best thing for your circumstances, so long as your credit history gets cleared in the end. You may be surprised at how much easier you can get out of debt with everything you have invested in kept safe and still under your ownership.
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