The Individual Voluntary Agreement

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The Individual Voluntary Agreement prevents you from becoming bankrupt added to the harsh penalties that also come along. Legally speaking, the creditors are no longer allowed to hassle you, while they demand for return of the borrowed amount of cash. Once you qualify for an Individual Voluntary Agreement, you can refer to a personal debt adviser, and he or she will guide you across the entire process while also mentioning and clarifying every point to you.
The bad parts played by bankruptcy, as also the penalties that come along, are avoided after you sign this kind of an agreement. Only a single affordable repayment of debt will be done by the borrower.

Further, the creditors stop bothering you for repayment of the loan. But all benefits like these can be availed depending on whether you will be able to keep up with the terms related to the terms of repayment related to the IVA. The creditors will be responsible towards petitioning for bankruptcy against you, in addition to re-applying for charges and interest related to the loan.

Before you approach an insolvency practitioner, you are meant to possess some essential paperwork. To start with, a property valuation report showing the price of the homes those are being sold off in your area, when observed locally. Then, you will also need the copy related to the annual mortgage statement. You can receive the endowment policy surrender value from the insurance company. Even the copies of about three of paystubs consecutive in order, and belonging to you and your spouse, in case you are married will be required.

Actually, letters, statements, and other similar vital documents, which are to be filed under the IVA, clearly exhibit the amount you need to pay them, any reference number, and, to top it all, the account number that you currently possess. The causes pertaining to the financial state you are currently facing would have to be produced by you. The way the debt spiraled due to need for employment, an accident, ill health, loss of salary, and stuff resembling these circumstances; it is needed that you are, first of all, honest, and very precise. The reason behind is this letter, which capable to performing at your betterment and make your creditors convinced while they nod at the repayment proposal.

Only an agreed percentage related to your debt is paid back at the lender. The lender will no longer harass you about the repayment of the borrowed loan. Another advantage of this type of situation is that while you get an IVA, the interest levied on the loan borrowed by you gets frozen, implying that there is no growth in the debt.

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