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Individual Voluntary Agreement IVA’s

by Jim ONeil on September 9, 2010

Say no to bankruptcy and choose instead an option that saves you from disgrace and an unwanted future.Individual Voluntary Agreement

Why wait for your creditors to pursue your assets once you are declared bankrupt when you can still salvage it and your name using another option such as the IVA.

The Individual Voluntary Agreement or the IVA is a formal alternative for persons wishing to stay away from bankruptcy. It is indeed a type if debt relief that benefits the person in debt without also compromising the claims of creditors.

Part VIII of the country’s Insolvency Act of 1986 administers a method legal only in the United Kingdom, the IVA. It allows debtors to make a formal proposal on the methods or repayment through the supervision of an insolvency practitioner.Individual Voluntary Agreements ivas
By acquiring an IVA, the debtor can avoid the grave effects of bad credits that may include the sequestration of his assets. For the creditors, it also means getting more than what they usually get through sequestration and averting long court proceedings from burdening them. It is, therefore, a better option for the creditors themselves but more so for the debtor.

Unless the debtor gets an IVA, creditors would normally go to the county courts to seek a declaration of his bankruptcy. Once he is declared bankrupt through county court judgments or CCJs, his assets are pried over and made ready for sequestration procedures.

He will be restricted from making further loans and it will be doubly hard for him to enter into business agreements. Therefore, by allowing himself to wait for CCJ, he will not just be required to pay up any credit he owes but he will also be heavily penalized monetarily or not.

For people burdened with unmanageable credit situations in the UK, contacting specialist debt advice organizations is the most viable step. The advice given by these organizations range from ‘what to do’s’ to actually recommending able insolvency practitioners to the debtor.

Trust deeds experts help people with outstanding debt obligations go through the intricacies of solving their problems, educating them the legal parameters and monitoring the developments of the process for an IVA.

A debt-burdened person will have to find first a good insolvency practitioner to start out with the process of the IVA. Once he got one, he and the IP will then inform the courts formally that they are embarking on an effort to conclude an IVA.

After which, a meeting of all creditors is set to discuss the repayment proposal. Persuading the creditors to agree with the proposal is not difficult. Most of them would rather target the bigger returns promised by the agreement than settling for the amount resulting from a court-issued sequestration.

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