What Are The Things To Look For While Choosing An Individual Voluntary Arrangementby Anna Rose Blogger An Individual Voluntary Arrangement, a.k.a. IVA is the formal and legal binding agreement between you and the creditor for paying back the debts over the time period. The Individual Voluntary Arrangement must be set by some insolvency practitioner. The terms and condition of the Individual Voluntary Arrangement can be set as per the needs of the debtor. But, before you go and opt for an Individual Voluntary Arrangement, there are certain factors that you need to consider such as the expense, as because the Individual Voluntary Arrangement are quite expensive and moreover, there are certain risk factors involved too.
When Should I Hire An Individual Voluntary Arrangement?
Since these Individual Voluntary Arrangements are expensive, you must do thorough research on them to make sure that you actually need them. You can hire an Individual Voluntary Arrangement if:
● You are running two or more separate debts at the same time
● The total of your debts sums up to be more than ten thousand dollars
● You have taken debts from different creditors at the same time.
● You don’t want to get in direct dealing with the creditors.
● You have enough money to afford them every month.
I fall the above requirement suits your need, then you can opt for this Individual Voluntary Arrangement as they have their own advantages such as
● They are legally bonded. So, the creditors have to stick to the guidelines as because they rules are legally set by the debtor. And the creditors can’t run for you for the payments as you have introduced IVA between you and the creditor.
● The time of the Individual Voluntary Arrangement is limited, and you will need to pay back the loan on the tenor which usually last for around five years
● Only parts of the debts will be accepted by the creditors, and the rest will be done on written
But, there are certain factors that you should keep in mind to make sure that choosing an Individual Voluntary Arrangement is not the right choice for you as because the circumstances are possible to change. An IVA usually includes paying a set quantity to the creditors each month, and they will last for a number of years, which usually stays for five years. You must be equipped to commit to forfeiting a set amount throughout the tenor. In case your income is not, and you don't have a fixed term contract, an IVA might not be appropriate. Here is a free iva calculator which will help you to decide better.
Choosing an Individual Voluntary Arrangement has its own advantages and disadvantages. So, before choosing an Individual Voluntary Arrangement, make sure that you have gone through every part of the rules and regulations that are associated with the Individual Voluntary Arrangement.
Created on Aug 13th 2018 13:09. Viewed 133 times.
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