Hope this helps some of you in debt trouble
Nowadays life has become more complicated than it was in the past. People are now used to lavish lifestyle which sometimes compels them to take loans to fulfill various purposes. Untimely repayments and defaults leads to further agony and pain and one is faced with more than one creditor to repay and probable bankruptcy. In such a situation, Individual Voluntary Advice or IVA debt solution is the only hope for an individual.
As the name suggests it is a solution for multiple debts that an individual may have and helps the borrower to clear those debts by negotiating with the borrowers. A licensed Insolvency Practitioner or IP is appointed to preside over the entire proceeding. He negotiates with the lenders on behalf of the borrower and tries to reduce the debts. Usually about 70% - 75% of the entire debt is written off and the balance is to be repaid in equated monthly repayments for 5 years. Any outstanding amount after the final repayment is written off and borrower becomes debt free.
IVA debt solution is also different from other financial plans which are available in the market. It is legally binding on both the borrower and his lenders. After signing the contract with the IVA Company, no lender can hassle a borrower either by making threatening telephone calls or by taking any legal action. It is also beneficial for the borrower as he do not has to pay any interest for the repayment. The monthly repayments remain fixed throughout the tenure of 5 years and if one can repay the amount in time, the credit score goes up. Hence one can start afresh in terms of his credit history.
To be eligible for IVA one has to have minimum of 15,000 as debt with 3 or more creditor. It is also mandatory to be an UK citizen as well as to have proper valid documents to prove employment, salary and repaying ability.