Ultimate Guide Regarding Individual Voluntary Agreement (IVA)

Written by Karen Bryan

Are you fed up of your debt and want some solution for it but does not know perfect debt solution? If yes, then congratulations! You are at the right place. We will let you know the effective debt solution. It is none other than IVA, which is referred to as individual voluntary agreement. With the IVA help and advice, you can easily bring facilitation and relaxation in your life.

What Is an IVA?

Do not need to explore here and there to know what actually the IVA is! It is a marvelous agreement that is being signed between the creditor and you. In this legal agreement, you are legally allowed to deal for your debt at a reasonable price. It can help you financially to provide a solution to your debt issues. You are not bound to pay the debt all at once but can pay it in installments.

Get better control of your assets through the individual voluntary agreement. It would amazingly save you from bankruptcy.

What Does IVA Cover?

An IVA is a fabulous facilitator for debtors as it covers a variety of the unsecured debts. This generally includes the utility bills, Catalogue debt, mortgage shortfalls, bank loans, store cards, overdrafts, hire purchase debts, and council tax arrears. You remain protected against any legal claims by the creditor. Save your assets by considering IVA for debt issues.

Which Debts Are Not Covered in IVA?

One must be aware of the debts that IVA does not cover. You cannot take the aid of IVA for debts like certain kinds of car finance, student loan, child support arrears, magistrate court fines, etc. The secured loans can be covered in an IVA if you are having your own property to be used as security against such loans.

Similarly, with such security, you can get IVA for rent arrears and mortgage. But, the creditors should give a green signal for this.

What Documents Are Necessary for IVA Approval?

For the approval of IVA, you need to fulfill certain requirements and documentation. For applying IVA, you need to have the proof of your income. Similarly, if your spouse is earning as well, then provide his/her proof of income as well, if required. The main purpose of such documentation is to depict that you are able to afford monthly installments.

Hence, the examination of income is quite necessary. Provide your pay slips so that it is determined that you are eligible for IVA approval or not. Pay the debt as per your affordability after getting IVA approval.

Help to Set Up an IVA?

An insolvency practitioner is of keen importance as he helps you in setting up the individual voluntary agreement. You are bound to pay a fee for this as well to the Insolvency Practitioner. However, your monthly payments help you to pay a certain fee.  The major advantage is that you are not bound to submit any sort of up-front charges until the individual voluntary agreement is set up.