To fulfill the needs and pay outstanding debts, we are always in need of funds. The inflow and outflow of funds is not always systematic in life, sometimes we may have to face a crisis of funds that lead us to seek for the support of creditors. It is your responsibility to repay the debt in time to maintain your credibility and reputation in the market. As life is uncertain, we never know what happens in the future. If you have a burden of huge debt on your shoulders and you are unable to adjust funds for repaying the debt, you should take a bold decision of opting for debt management solutions. Firstly, it may sound unusual, but it is a rational decision. There is no point of dragging your increasing debts leading to troubles in life. Debt management solutions such as IVA are viable solutions that give you a second chance in life. Running away from problems is not justified. Face it as it comes, and start fresh.
If you are a citizen of England, Northern Ireland or Wales, IVA can work for you. The agreement is a debt solution for unpaid unsecured loans such as credit card bills or personal loans or current outstanding payments. People who are severely struggling in the repayment of unsecured loans need the support of IVA. If you would be unable to pay your outstanding debts in a reasonable time, you can seek to apply for an Individual Voluntary Agreement that provides protection from the creditors and allow you to pay your debts in easy affordable payments.
It is basically an arrangement scheme that provides the debtors an opportunity to make affordable payments for a period of 5 to 6 years to the creditors. It involves the intervention of an insolvency practitioner who analyses the financial condition of the debtor and provides him the debt solutions. The role of insolvency practitioner is very important for the debtor. He is the one who prepares the agreement and places it before the creditors for approval. The insolvency practitioner is a qualified professional who has experience in handling challenging cases of insolvency and preserving the rights of the debtors. To know more about the debt management solutions, you can visit http://www.ivaplan.co.uk/.
The support of an insolvency practitioner has great significance in the implementation of IVA. He effectively monitors your financial health and realizes how much you can afford to pay to the creditors as monthly installments. When the agreement is enforced, it provides you ultimate protection from the creditors. The increasing interest and charges are frozen immediately. To implement this agreement, at least 75% of the creditors should be in favor of the agreement to be legally binding. The negotiation process of the agreement is conducted by the insolvency practitioner with the creditors.
To maintain full disclosure–
The complete process of IVA is dependent upon the ethical values and honesty of the debtors. You should not hide your property and assets from the insolvency practitioner and furnish him all the financial details to enable him to assess your financial condition. During the agreement, if there are any changes in your inflows and outflows, you should immediately inform the insolvency practitioner.