The IVA stands for an Individual Voluntary Arrangement. An IVA is a officially permitted document which will act between you and all of your unsecured creditors. It will prevents your unsecured creditors taking any action against you, such as raising and enforcing a County Court Judgment ,if you fall into debts with your payments. It also protects you from your unsecured creditors, calling you or transitory your case to a debt collection agency, adding additional interest or charges, all the attention of your debts will be frozen.
When you go into an IVA Scotland your creditors will agree to accept an affordable monthly payment based on you or your households income and expenses over a place period, usually 5 years. As long as you keep up with your repayments throughout this period, any outstanding unsecured debt will be written off and you will end up paying less than you originally owed.
Legally binding agreement
An IVA Scotland is a lawfully binding agreement and a form of Insolvency so you cannot set one up on your own. You will need help from an Insolvency Practitioner. IVA’s are not suitable for everyone’s situation and they would recommend that you get professional, impartial advice before taking one out. Their debt advisors will provide free and sensible advice that you need to find out which is the best debt explanation for you.
Get the help of insolvency practitioner
They will evaluate your assets along with your income and expenditure and calculate how much you can pay for to pay back each month to your creditors and present this in order to t their Insolvency Practitioner. Their Insolvency Practitioner will then put together a offer to present to all of your unsecured creditors, they will ask you to sign this to confirm it’s the best offer you can make
It’s very significant that you are totally honest about your circumstances so their Insolvency Practitioner is not submitting false information. Their Insolvency Practitioner will then send the proposal to every of your unsecured creditors. A “Meeting of Creditors” will then take place during which your IVA proposal will be accepted or rejected.
Features of taking help from Insolvency practitioner
An IVA Scotland can give you some breathing freedom and make repaying your debts easier and more manageable as all of your debt repayments will be combined into one compact, affordable monthly repayment.
An IVA can make your life a lot less demanding as long as you keep up the monthly repayments and stick to the terms and conditions of the IVA, your unsecured creditors are banned by law from contacting you. This clearly means all the letters, threats, telephone calls and court actions you may have been receiving will stop, leaving you free of worry and hassle.
Once you have repaid your IVA over the particular period your remaining debts will be written off, so you can make a clean, fresh, monetary start again.