Individual voluntary arrangements are generally configured to run over the course of a five year term, though sometimes it can be varied at the outset to suit individual requirements. In Scotland, where they are called Protected trust deeds, the span is usually 36 months but may be 4 or 5 years. In both the individual voluntary arrangement and also the trust deed the debtor client is safeguarded from their creditors by the insolvency laws and their debts are completely and utterly discharged at the conclusion of the period (however long that may be set to run).
The debt management plan or IVA will be carefully drafted by an insolvency practitioner who will usually be academically qualified in these matters and be very familiar with a debt consolidation IVA. All of the debt and all the creditors will be considered together. Income and expenditure of the client will be looked at as well and a monthly or weekly expenses list will be drawn up with the consent of the client and also the creditors. This will allow for the important household expenses to be paid first before the creditors are considered. The total capital sum of debt can be diminished in this way by 60 percent or more, and any income left over is set aside to reduce any remaining debt in a very controlled and painless way and on a greatly reduced basis.
An IVA is legally binding and there are things that creditors must not attempt to do when the IVA is in place. This embargo includes not being allowed to contact you either by phone or letter, or to attempt to reach you. If the creditor or his one of his agents (i.e. a debt collecting company) even attempts to contact you during this time then they are deemed to be in breach of the iva. Creditors (such as banks, credit card companies, etc.) have to stop making phone calls and writing letters and should not try to intervene in the life of the debtor client.
Under recent government law, IVAs have brought a kinder way to deal with personal debt. An individual voluntary arrangement is an easy alternative to bankruptcy and has none of the shame or stigma attached. It is the best way to handle personal insolvency. In accordance with the new law, a well constituted IVA will write off up to sixty percent (often more) of personal debt at a stroke. Your keen interest in a debt consolidation IVA should be well rewarded by the transformation in quality of life brought about by its use.
Not everybody can qualify for an individual voluntary arrangement; there are a number of conditions about who may apply and who may not. Usually people applying for one need to have a steady income giving them an amount in excess of regular household bills in order to finance the planned monthly repayments, but this needn't be a large amount by any means. Those not qualifying for an individual voluntary arrangement will almost always be suitable for a comparable debt relief programme, so it's certainly worth applying just to see.
To find out if you qualify for an IVA visit the Best Debt Consolidation IVA site and get the best truly impartial and independent advice.Our panel of experts are whole-of-market specialists so you are guaranteed to get the best quote for your own circumstances. Also see our site if you want to write off your credit card debts.
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