What is IVA advice in UK stands for individual voluntary arrangement is actually a formal as well as legally binding settlement process between you & your creditors in order to pay back the debts over a certain period of time. It means it’s authorised by the court & your lender has to stick to it.
What is IVA advice in UK can be flexible in order to suit all your requirements but it can be pretty costly & there are certain risks to consider too!
How an IVA works
An Individual Voluntary Arrangement needs to be set up by a licensed person, called an insolvency practitioner. It'll be an accountant or a lawyer. And the insolvency practitioner will charge a certain amount of fee for the IVA. Always keep in mind that these can often be potentially high as well as are based on the amount you repay through the individual voluntary arrangement register. Your hired insolvency practitioner will directly deal with your lender throughout the life of the Individual Voluntary Arrangement.
So, if you opt for a professional debt management firm for an IVA, try to figure out how much fees they can charge before you determine. A professional debt management firm is likely to be more costly as they charge a certain amount of fees on top of the insolvency practitioner's charges.
How the repayments work
So if you decide to get an Individual Voluntary Arrangement, then you'll work out a repayment scheme with the insolvency practitioner. It can be a lump sum payment, a monthly payment, or even a combination of both.
This repayment scheme must be based on the amount you can easily afford & the lenders will have to agree to it. So in the case of the monthly payment, the Individual Voluntary Arrangement can last for 5 or 6 years.
Any fees will be directly paid to the insolvency practitioner. And they'll distribute the money to your lenders.
However, if you are not able to provide enough to pay your debts in full by the end of your IVA, then you won’t have to pay the rest. The insolvency practitioner must advise you about this.
If you come into money
And, in case, if you get a windfall during your Individual Voluntary Arrangement, for instance an inheritance, it'll be taken & paid to your lenders. So, if you figure out that you are due a certain amount of money because of some circumstances that occurred before the IVA, your lenders may have the right to claim it as well – even if your Individual Voluntary Arrangement has finished.
On the other hand, you can always get in touch with your nearest Citizens Advice for expert assistance if you get a lump sum after your Individual Voluntary Arrangement finishes.
Ending Notes
What is IVA advice in UK is an individual voluntary arrangement. It establishes a legal contract between you and your creditors. This enables you to repay your loans at a reasonable rate. In the United Kingdom, IVA advice is a formal lending solution for persons who want to pay off debt over a period of time. This section will explain how an IVA works and guide you through the decision-making process. To learn more about IVA guidance, call our toll-free number 03338803165.
