Sun 22nd Nov, 2009
Procedure Of Applying For An IVA
If your outstanding debts are up to 15000 or above, you must consider applying for an IVA, which stands for Individual Voluntary Arrangement. This is a very useful debt solution in times of economic crisis. It is a legal procedure, approved by the governments to avoid individual bankruptcy. Indeed, it is a difficult decision to apply for an IVA, but this is one of the reliable and convenient ways of getting rid of the loans.
There are a few conditions, which you must confirm before applying for an IVA. Firstly, you should be in paid employment, so that you shall be able to settle your debt in instalments within a specific period. Secondly, most of the IVA settlements are not meant for mortgages, and for secured loans. Thirdly, you should have at least two creditors.
The first step that should be taken for applying for an IVA is to get in touch with an IVA expert. This may be done by searching on the internet, or through the yellow pages. Once you have chosen the IVA expert of a reputable company, you are ready to go ahead. You would be given an application form to fill out all your personal and financial details.
The minimum amount that you can offer to the creditors is calculated after assessing your financial status with the help of the details in the form. You should mention an enough minimum amount for getting your application approved. The IVA expert will satisfy you with the procedure and will then prepare the statement of affairs and would send it to the IP or the company Insolvency Practitioner, who becomes a legal representative for your case to your creditors.
The IP drafts a formal written statement, or a proposal of your financial status, and your credit background. He indicates in his report that you have tried all other alternatives to pay off your debt, but IVA seems to be the last choice. You will be required to sign this statement, which would be witnessed by either a solicitor or a commission of oaths.
Your proposal would then be forwarded to the creditors. You might be asked for some modifications in your monthly payments. Once the proposal has been amended, the creditors might call for a meeting to vote for your case. Your proposal would get a legal status and the creditors would abide by it only if you mange to get 75 percent of the votes in your favour.
Information of the acceptance of your proposal would duly be sent to the court as well as your creditors. The IP would then become a supervisor of all the dealings between you and your creditors. You have to fulfil all the requirements of your creditors, for which you may even have to dispose off some of your assets. Your debt would be paid off in time if you regularly make your monthly payments.
IVAs have so far helped many individuals who were on the verge of bankruptcy, by giving them the legal advice and support that they desperately needed.
Edward Woodwards is a financial consultant. You can take iva help and solutions to debt problems. Find out more information at his recommended website http://www.iva.org.uk.