An Individual Voluntary Agreement can be a more flexible settlement arrangement than bankruptcy, however it is not the best choice for everyone. If you desire an What is an IVA loan, then you must meet some of the criteria to know about what is an iva uk, not all debt is incorporated, & there are certain risk factors involved too!!!
If you are grappling to pay off your multiple debts, getting a suitable debt measure might be your only option. When you’re unable to pay your creditors in full before the due date,, then an Individual Voluntary Arrangement (IVA) is a great option. You have to just not default on making regular IVA repayments to cover your debts by getting into an IVA UK. Your IVA UK will be handled by an Insolvency Practitioner. what is iva in uk agreement will usually last for about four to five years. But if circumstances changes, the IVA loan terms, and duration might vary. For more information on IVA UK, seek IVA debt advice.
To know more about iva settlement loan & it’s procedures, have a deep look below! So, without much delay, let’s get started to know what is an iva uk !!!
What is an IVA loan?
what is iva in uk ? It is an Individual Voluntary Agreement. It is a formal as well as legally binding agreement conducted between an individual & their bankers in order to repay debts over a specific time span.
An IVA settlement plan can be more flexible than bankruptcy, however it is a bit expensive. Always bear in mind that the IVA settlement plan must be conducted by a highly skilled & experienced insolvency practitioner. A professional insolvency practitioner will always charge a fee on a monthly basis for their service. You can make the monthly payments to the insolvency practitioner who then divide the money among your creditors
Tips to apply for IVA loan
Tip 1- understand why to opt for an IVA?
To Apply for an IVA loan is much more reliable as well as more flexible than bankruptcy since you might be able to keep all your properties & assets a car or loan, & in fact, you will be able to continue to use your bank account. Well, Individual Voluntary Agreement could be a better than bankruptcy if you:
- Own a business
- Own your home
- Will lose your job if you declare yourself as bankrupt
- Have a lump sum money or additional income each month from which you can make monthly payments
- If any of your lenders is threatening to make you bankrupt, then opting for an IVA loan might assist you avoid the bankruptcy.
Tip 2- Determine Who can get an Individual Voluntary Agreement plan?
Not everyone can be eligible for an Individual Voluntary Agreement plan, however if you owe money to 3 or more lenders & your whole debt amount is £10,000 or more, then it could be possible for you.
You should have a regular earning & be able to make repayments every month. But in case if you have unpredictable income, then an IVA settlement plan may not be the best choice for you.
Popular Blog : What is an IVA in Scotland?
You will be able to make payments from lump sums, defined contribution pensions, equity released from your home, & profits from sales of properties, however you must get financial advice from a professional advisor if you intend to do this.
Tip 3- Get to know What debts are usually covered by an Individual Voluntary Agreement?
An Individual Voluntary Agreement usually covers the majority of the debts, however they are taken out in order to cover overdrafts, bank loans, store & credit cards, personal loans & similar types of debts. You can also incorporate priority debts like tax arrears as well as utility debts. Well, secured loans, like mortgages, can be incorporated with the lender’s permission. And debts like, court fees & child support can’t be included.
Tip 4- understand Is an Individual Voluntary Agreement right for you?
If you do not own your property bankruptcy could be a better option, however it’s pretty essential to get professional financial advice before you go down either route. So, your lenders might not agree to an Individual Voluntary Agreement, & if they do agree however it does not work out, in fact they could make you bankrupt.
So, if you think that you’re in debt & are facing difficulties to handle it, then you must seek independent advice for What is an iva loan.
To get iva debt advice, let us know in the comment section below…On the other hand, give us a ring or send us a mail.