Debt management is a huge problem that many of us face in our lives. No matter how alarming the situation, there is always a way to improve your financial problems and repay debts. One of the proven ways to get rid of your debts is an IVA plan. IVA stands for Individual Voluntary Agreement. This form of agreement is a formal agreement. Purpose c Plan IVA is to help you enter into an agreement with creditors to repay your debts at an affordable amount. Continue reading this article to learn more about this amazing opportunity.

Some important information

With IVA you enter into a legal agreement with your creditors. An insolvency practitioner is the only person who has the right to set up an IVA plan for you. The best thing about the IVA plan is that it allows you to convince lenders of the amount you can afford to pay. After concluding the agreement you will have the opportunity to repay the debt in the form of a one-time payment or you can repay a fixed amount within 2-3 months.

If you go on the debt repayment path for 2-3 months, your finances will be reviewed every year. All your lenders will receive your latest progress report to better understand your financial situation.

Applying for an IVA

As mentioned earlier, only an insolvency specialist can set up an IVA plan for you. They will review your financial situation and the condition of your creditors. But approving your request for an IVA plan will not depend on your creditors. Voting will take place among your creditors, and 75% of creditors will need to vote for you so you can approve the IVA plan. Once you have legally entered into an agreement with your creditors, you will receive legal protection to repay the debt payments as you agreed. Experts recommend getting the right advice on getting an IVA plan to help you make the right choice.

Some restrictions

During the IVA your lenders ensure that you do not take any other loans and focus only on repaying your previous debts. Rules c Plan IVA restrict you in any other form of credit, such as loans, etc. Without prior permission from your IP you cannot obtain credit cards, personal loans or overdrafts. You also cannot receive payday loans or informal loans from family or friends.

Even if your insolvency specialist allows you to continue taking out additional loans, most loan providers will reject your application because your financial history will show that you have not repaid your previous debts. The IVA plan also restricts you from taking over £ 500 without prior permission as this is against the terms of the IVA plan. Your best choice in a financial emergency is to talk to an IVA provider rather than get a loan without informing the parties.

Wage cuts during the IVA plan

Most payroll plans are like borrowing money from your loved ones. Your employer, in fact, gives you credit in terms of payroll deductions. Subscription loans and work schemes are subject to traditional wage cuts. Because your payroll plan may have a direct impact on your IVA agreement, you are not permitted to join any of these schemes without first agreeing with your IVA provider. Your IVA provider is your resource to understand all the terms of your IVA plan. Feel free to discuss your financial issues with them.

What You Need To Know About an IVA Plan

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