APPLYING FOR AN IVA
If your outstanding debt amounts 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 installments 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, then you are ready to go ahead. You shall be given an application form to fill out all your personal and financial details.
The IVA expert shall assess your financial situation after going through this form, and he will calculate the minimum amount that you can offer to your creditors. This amount should at least be enough to get your IVA application accepted. If you are satisfied with this procedure, then the IVA expert will prepare the statement of affairs, and will send it over to the Company Insolvency Practitioner, or IP who shall legally represent your case to the 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 shall be required to sign this statement, which shall be witnessed by either a solicitor or a commission of oaths.
Now your proposal shall be forwarded to the creditors. They would most probably ask for a few modifications in the monthly payments. After amending this proposal, if needed, the creditors arrange a meeting in order to vote for your case. If you get 75% of votes in your favour, then your proposal attains a legal status, and the creditors are bound by it.
The court and all your creditors shall be informed about the acceptance of your IVA. The IP will supervise from now onwards the dealing between you, and your creditors. You might have to dispose off your assets, if any, and abide by the requirements of the creditors. If you pay the monthly installments on time, then you will be able to get rid of all the dues.