IVA debt relief method is recommended under the legal protocols of England and Wales when you are unable to make the repayments on the outstanding debts with interest and the overheads associated with them. The acts are formulated in such a manner that it can protect you from any legal actions from the creditors, at the same time to ensure the creditors get considerable repayment on time. So you can consider IVA Debt as beneficial for both. Here the creditors agree to certain terms while you as a debtor will commit to certain conditions imposed by the creditors under the IVA act.
IVA Debt Agreement and Procedures
- Once the agreement is signed and set in action the creditors will not be able to take any legal action you or your assets. This is subject to the condition that you conform to your commitments of repayment on time till the agreed time period.
- The creditors still retain the rights to enforce their security concerns under the law unless they agree not to do so in principle and practice.
- At the end of the agreed period, your IVA Debt attorney will be able to declare that you are free from outstanding debts after making the agreed payments on time. At that time your creditors too shall agree and waive off the remaining loan sum accordingly.
- Your IVA Debt attorney will make all the arrangements to waive the / reduce the interest sum and the overheads attached with the outstanding loans. He will also make arrangements for settlements of taxes (if any).
- The IVA Debt attorney can renegotiate with your creditors on your behalf to settle for earlier outstanding balances settlement in case your finance improves during the repayment period. In such circumstances the creditors may not claim complete loan recovery or demand for interest and overhead expenses to be recovered from you. For this you need to discuss with your IVA Debt attorney and make sure of avoiding such probability legally.
- You must submit all the relevant details concerning your bank accounts, assets, liabilities and other family or friendly borrowings to your IVA Debt attorney. This will help him during renegotiations with your creditors in case your finances get worse during the agreement period.
- You must inform your employers about your IVA Debt plans and agreements if you happen to be an employee. You must also provide this information to your banks wherein you hold personal or trading accounts.
- You might be allowed to take a break (till 6 months) from the continued repayment, subject to the terms of your creditors. The IVA Debt attorney will be able to help you in adjusting the remaining installments in such a manner that they don’t affect the sum of total payments in any manner. At the same time he will also ensure that it doesn’t become a burden for you financially. You need to discuss about the concerned legal issues with your IVA Debt attorney in detail.