{"id":9675,"date":"2014-01-21T16:25:40","date_gmt":"2014-01-21T16:25:40","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=9675"},"modified":"2020-10-20T09:54:17","modified_gmt":"2020-10-20T08:54:17","slug":"important-points-about-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/important-points-about-an-iva\/","title":{"rendered":"Important points about an IVA"},"content":{"rendered":"\n

IVAs or Individual Voluntary Arrangements can act as a really effective tool for people whose finances have become unmanageable. However, it\u2019s worth making sure you understand the details of any such arrangement before taking any decisions.<\/p>\n\n\n\n\n\n\n\n

Your Insolvency Practitioner will be able to help you get to grips with what\u2019s involved in an IVA and make sure it\u2019s a good option for you, but there are a few general points to bear in mind.<\/p>\n\n\n\n

Terms of an IVA<\/h2>\n\n\n\n

You will need to be able to keep to the agreed payments throughout \nthe term of an IVA in order for it to be successful. If at some point \nyou start to struggle, your IP may be able to either arrange a payment \nholiday or negotiate with your creditors to amend the arrangement, but \nthere is limited scope for this in most cases.<\/p>\n\n\n\n

Your payments may also be reviewed during the term of the IVA, and \nyour IP may ask you to increase them if your finances improve. You may \nalso need to release equity from your home, if you own one, at some \npoint in the term.<\/p>\n\n\n\n

No Credit<\/h2>\n\n\n\n

During the IVA, you will not be able to get further credit. Although \nthis may seem a serious restriction, it does make it more likely that \nyou will in fact manage to get your finances under control. As part of \nthe IVA you are required to pay back as much as you can realistically \nafford while still having enough to live on, so getting further credit \ncannot really be an option.<\/p>\n\n\n\n

\"No<\/figure>\n\n\n\n

Once the IVA is finished, and providing you managed to stick to the \nagreement, you will be free to get credit again, and to start repairing \nyour credit rating.<\/p>\n\n\n\n

Creditor Agreement<\/h2>\n\n\n\n

Having an IVA accepted really depends on whether the creditors agree \nto it. Once your IP has drawn up a proposal that you\u2019ve agreed to, this \nwill be presented to the creditors. They then hold a meeting and vote as\n to whether to accept it. There\u2019s no guarantee that they will, but your \nIP will help you to propose something that is likely to appeal to them.<\/p>\n\n\n\n

In some cases creditors will ask for changes to be made to the \nagreement before they will accept it. Your IP will be able to handle the\n negotiation process if this happens, and will make sure you are kept \ninformed throughout.<\/p>\n\n\n\n

Legally binding<\/h2>\n\n\n\n

Remember, an IVA is a legally binding contract for both you and the \ncreditors involved. This means that you have a legal responsibility but \nalso that you are protected by the law from your creditors hassling you \nabout the debts as long as the arrangement is in place. Once the \narrangement term has elapsed, they will also be legally prevented from \npursuing the debt any further.<\/p>\n","protected":false},"excerpt":{"rendered":"

IVAs or Individual Voluntary Arrangements can act as a really effective tool for people whose finances have become unmanageable.<\/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-9675","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\/9675","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=9675"}],"version-history":[{"count":3,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/9675\/revisions"}],"predecessor-version":[{"id":13528,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/9675\/revisions\/13528"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=9675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=9675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=9675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}