An IVA offers the much required breather for a troubled debtor. It allows a debtor to make a formal proposal to pay their creditors a significant percentage of your debt over a period of time with monthly repayments and after the set period of time you would be free of your debts.
IVA Settlement, while similar in idea to a regular IVA, is carried out much differently. This is often called a “Lump Sum IVA” because it involves one lump sum payment that covers all pre-existing debts owed and legally clears the debtor of further obligation to those creditors.
In order to qualify for IVA Settlement, one must meet the regular IVA qualifications, owing more than £10000 to more than three creditors and having financial difficulties and a low disposable income (your total income with reasonable costs of living, including any new loans, subtracted from the total). The IVA Settlement is legally binding and all debts will be settled after the one payment.
But if you don’t have the lump sum necessary for this settlement readily available right now, still there is a way out. If you own property, you can release some of the equity through a secured loan. You’ll prevent yourself from making five years of payments through a regular IVA, paying high fees to the Insolvency Practitioner in charge of your case, and help rid yourself of your overhanging debts after only one payment.
A licensed Insolvency Practitioner can help you with all the legalities and would be successful in negotiating with the creditors on your behalf. Most of us assume that it is impossible to be approved for finance after insolvency. But the rising number of insolvencies and increased competition has paved way for an increased number of options which you can source online from the confines of your home or office. Seek help now, and tackle your debts on time!
Summary
IVA or individual voluntary agreement is beneficial for those who are in verge of bankruptcy. They can benefit a lot from benefit IVA. There are professional and authorized institutions to help you with that. They appoint an insolvency practitioner to study your financial situation and propose a repayment scheme to your creditors. Once it is done no clause can be changed in the agreement.
