How does Individual Voluntary Arrangement - IVA work? Call : 03338803165
IVA which stands for individual voluntary arrangement is actually a formal as well as legally binding settlement process between you & your creditors in order to pay back the debts over a certain period of time. It means it’s authorised by the court & your lender has to stick to it.
IVA advice can be flexible in order to suit all your requirements but it can be pretty costly & there are certain risks to consider too!
How an IVA
works
An Individual Voluntary Arrangement needs to be set up by a
licensed person, called an insolvency practitioner. It'll be an accountant or a
lawyer. And the insolvency practitioner will charge a certain amount of fee for
the IVA. Always keep in mind that these can often be potentially high as well
as are based on the amount you repay through the individual voluntary arrangement register. Your hired insolvency
practitioner will directly deal with your lender throughout the life of the Individual Voluntary Arrangement.
So, if you opt for a professional debt management firm for an IVA, try to figure out how much fees they can charge before you determine. A professional debt management firm is likely to be more costly as they charge a certain amount of fees on top of the insolvency practitioner's charges.
How the
repayments work
So if you decide to get an Individual Voluntary Arrangement, then you'll work out a repayment scheme with the insolvency practitioner. It can be a lump sum payment, a monthly payment, or even a combination of both.
If you
come into money
And, in case, if you get a windfall during your Individual Voluntary Arrangement, for instance an inheritance, it'll be taken & paid to your lenders. So, if you figure out that you are due a certain amount of money because of some circumstances that occurred before the IVA, your lenders may have the right to claim it as well - even if your Individual Voluntary Arrangement has finished.
On the other hand, you can always get in touch with your nearest Citizens Advice for expert assistance if you get a lump sum after your IVA advice finishes.
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