What is an Individual Voluntary Arrangement (IVA)?

The individual voluntary arrangement (IVA) is a one kind of legally binding agreement that would be conducted between you & your banker that assists you pay off your debts at a reasonable price. Well, you can make easy monthly payments controlled by a professional insolvency practitioner. 

So, if you've an IVA & honestly stick to the settlement agreement, then you will get protection from your lender taking further steps against you & in fact certain debt might be written off. 

Basically, the IVA is an insolvency solution that influences your financial condition in several approaches. Your credit report might be affected for 5 to 6 years, from the time the settlement process is agreed. And during this time, your individual voluntary arrangement will also be recorded on the Individual Insolvency Register. 

You will be required to keep to a specific budget agreed with your hired company, & in case, if you miss any kind of monthly payments, & your IVA advice can be extended to cover the arrears. 

This is unlikely you will be able to sell your property, however you may be needed to release equity from it by remortgaging. 

And your lender might also add certain rules and regulations, or modifications, to your individual voluntary arrangement being approved. But in case you require time to think about the modifications, then the meeting of lenders can be adjourned for up to 2 weeks 

And when you agree to the changes or modifications, then your IVA will be confirmed on the day of the meeting of lenders. 

A meeting of lenders will be conducted where your lenders will determine whether or not to approve the IVA settlement agreement. It completely depends on your lender whether or not they approve your settlement agreement and we cannot force them to approve it at all. But, as long as your IVA proposal has the best offer, the majority of the lenders will agree on your proposal. 

For your IVA settlement process to be approved, the lenders who you owe 75% of your debt to - & who vote at the meeting of creditors - require to vote in favor of your IVA settlement proposal. 

And if an IVA is the most reliable as well as convenient solution for you, then look for the best professional for IVA Advice!