{"id":10480,"date":"2011-10-31T10:14:37","date_gmt":"2011-10-31T10:14:37","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=10480"},"modified":"2019-07-31T10:17:31","modified_gmt":"2019-07-31T09:17:31","slug":"iva-or-informal-plan","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-or-informal-plan\/","title":{"rendered":"IVA or Informal Plan"},"content":{"rendered":"\n

When you have debts that you cannot meet the payments for, there are a\n number of options you can explore. Individual Voluntary Arrangements \nare a useful measure in helping people to get their finances under \ncontrol, but there are situations in which an IVA is not possible or is \nnot preferable for some reason.<\/p>\n\n\n\n\n\n\n\n

Negotiate personally<\/h2>\n\n\n\n

If you have debts, for example from credit cards, you can always \nattempt to contact your creditors direct and ask them to renegotiate \nyour credit agreements, for example through reduced monthly payments. \nThis can be a stressful process, and does not always result in \nrenegotiated terms, as it is essentially up to the creditor to decide \nwhether or not they want to negotiate with you.<\/p>\n\n\n\n

\"Credit<\/figure>\n\n\n\n

Using IVAs<\/h2>\n\n\n\n

If you are facing bankruptcy because of unsecured debt, an IVA can \nhelp you to avoid this consequence. Through an IVA, you are effectively \nrenegotiating your credit agreements, but your Insolvency Practitioner \nhandles all of the negotiations for you. Your IP is also best placed to \nuse to law to protect you from legal action from your creditors, and \nwill initially be able to apply for an Interim Order preventing any such\n action in the short term.<\/p>\n\n\n\n

Legal protection<\/h2>\n\n\n\n

One of the main advantages to an IVA is that the creditors who are \ninvolved in it cannot take any legal action against you while it is \nelapsing. Providing you keep to the arrangement, once the IVA has \ncompleted, they are not able to pursue your debts either and must \nconsider them settled. If you use an Informal Agreement with your \nindividual creditors however, they will be free to take court action \nagainst you at any time <\/p>\n\n\n\n

Cover<\/h2>\n\n\n\n

Another advantage to using IVAs, is that they cover all of your \nunsecured debts. The creditors will have a meeting at which they discuss\n whether to accept your IVA proposal. As long as enough of them vote to \naccept it, they will all be bound to it. The IVA is a legal contract, \nand so uses the force of the law to protect your interests. <\/p>\n\n\n\n

Requirements<\/h2>\n\n\n\n

To get an IVA you will need to satisfy a number of criteria. \nTypically, you need to have at least \u00a315,000 of debt, to at least 3 \nlenders. You will also need to have enough income to make IVA payments \neach month. Normally IVA monthly payments will be no less than \u00a3200, \nalthough this does vary.<\/p>\n\n\n\n

Alternatives<\/h2>\n\n\n\n

IVAs remove the stress of dealing with your creditors personally. If \nyou cannot use an IVA for whatever reason, there are other options you \ncan explore, such as debt management. Debt management organisations can \nhelp by giving you advice about managing your debts, and can also \nmediate between you and your creditors to reach an Informal Agreement.<\/p>\n\n\n\n

If you meet the requirements for an IVA, and are potentially facing \nbankruptcy because of personal unsecured debts, then they are well worth\n considering. However, only a professional expert can tell you what \noptions are both available and advisable in your own particular \nsituation.<\/p>\n","protected":false},"excerpt":{"rendered":"

When you have debts that you cannot meet the payments for, there are a number solutions that could help such as an IVA or DMP.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-10480","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=10480"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10480\/revisions"}],"predecessor-version":[{"id":10487,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10480\/revisions\/10487"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=10480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=10480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=10480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}