What is an IVA and other Additional Details?

Debt is one of the most common problems when it comes to financial situations. Many people have debts, as a solution to pay for the expenses when income gets short. This is a financial problem that most people face, especially those who really cannot get an extra income through other choices. This leaves debt as the one and only guaranteed choice. However, although it may seem as a solution for some, it is only a band aid solution. This means that it does not really solve the problem at all. Worse, it may be another problem when one does not even get to pay what they should pay for the debt. A debt although it may be a remedy for a short time, may leave a scar especially that you are already in a current financial problem. Also, it may dig you deeper into the pit of unending financial problems.

This is where IVA comes into the scene. This helps people in their debts and in making life easier. With this arrangement, you can pay off what you can pay for in your debt, while you are protected against your creditors. Through this agreement, you will also have a fresh and new start. It is actually a debt solution. This is also legally binding so this does not involve any illegal transactions or agreement. This agreement is made with your creditors upfront. In the IVA, each month you can make one affordable payment. This lasts up to 5 or 6 years, depending on the agreement. Once you have paid what you have agreed to pay on that period of time, and as long as you have fulfilled the obligations that you need to do enclosed in the agreement, then there will be no legal actions that may be taken against you. Then by the end of the period of contribution, you will no longer have to pay the remaining debt that you owe your creditors previously. This IVA is at your advantage so it is known to be of great help to more people who could qualify for this debt solution.

One needs to be qualified in order to be able to use an IVA. Check out the website IVplan.co.uk to know whether you can qualify for one, which you can use especially when you are in debt. Some of the qualifications to get an IVA are you must have a £15,000 or more than worth of unsecured debts. This debt should be owed to two or more creditors. Another qualification is that you should be a resident of England, Wales, or Northern Ireland because this arrangement is available to these countries. Some other countries may call it with a different name so you should check on it, if you cannot qualify because you are not a resident of the said countries stated above. For those residents of Scotland, there is a thing called protected trust deed, which can also be considered as similar to that of an IVA.

The payments that you must regularly make shall be done to an insolvency practitioner. This practitioner will be the one tasked to divide the money between you and the creditors. There are some other important details that you wish to see with regards to an IVA so you should better check out the website mentioned above. The role of the insolvency practitioner is really important because they will be the one to help those hundreds of people who are also in debt just like the others. They are the ones primarily responsible for the paper works and other things involved with the whole agreement. But before you must know what this person does, you need to qualify first with the IVA. This is a great advantage, and also a great first step to those who want to be debt free when it comes to their current financial situation. You really need to try this because it will be an advantage and also, it can help you to get a clean state after you are done with the payments when you get qualified for it. If interested, check  IVA Plans for all the details you need to find out.