Procedure Of Applying For An IVA

You are eligible to apply for Individual Voluntary Arrangement, generally known as IVA, if the amount of your outstanding debt is 15000 or above. In the times of economic crisis, this serves as a very useful debt solution. The governments have approved this legal procedure for avoiding individual bankruptcy. Applying for an IVA is a tough decision, but there is no other more convenient and reliable way 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 instalments 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.

You should get in touch with an IVA expert to apply for an IVA. Search on the internet or go through the yellow pages in order to do so. You are ready to proceed once you have an expert from a reputable company. You should fill out the application form, which would be given to you for filling out your personal and financial details.

The IVA expert will 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, the IVA expert will prepare the statement of affairs, and will send it over to the Company Insolvency Practitioner, or IP who would 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 will be required to sign this statement, which would be witnessed by either a solicitor or a commission of oaths.

Then your proposal will 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 will arrange a meeting in order to vote for your case. If you get 75% of votes in your favour, your proposal attains a legal status and the creditors are bound by it.

Information of the acceptance of your proposal would duly be sent to the court as well as your creditors. The IP would then become a supervisor of all the dealings between you and your creditors. You have to fulfil all the requirements of your creditors, for which you may even have to dispose off some of your assets. Your debt would be paid off in time if you regularly make your monthly payments.

By providing legal advice and support to the individuals, who are on the verge of bankruptcy, the IVAs have been very helpful so far.

Edward Woodwards is a financial consultant. You can take iva help and solutions to debt problems. Find out more information at his recommended website http://www.iva.org.uk.