Things You Need to Know About Individual Voluntary Agreement
There are a couple of main points that you should know about IVA before you get into it so pay attention as we talk about them down below.
Amount of Debt
One main concern of debtors is the amount of debt that is written off under this agreement and it is a legit concern. You should know that the amount of debt that gets settled under this arrangement is something dependent on the debtor i.e. how much debt he/she can afford to pay in a reasonable way over the specific period of time but you should know that it is said that around 70% of debt is written off which is a huge amount. The amount that is paid off is also dependent upon the amount that was originally owed by the debtor.
The time period of this contract is 5 years in total and during this time, the debtor needs to pay back every month as much as he/she can.
IVA is a great option for the debtor but not always for the creditor if he/she/they are in need of money so IVA can only come into action if the creditor says yes to it.
You need to remember that IVA can only be initiated by an insolvency practitioner and no one else. The management of such a legal contract is a legal and serious matter and can only be handled by an insolvency practitioner. It is imperative that you go to the right source to get information so we would request all our readers to consult an insolvency practitioner to gather information about IVA but you can find out more about it online but keep in mind that it is not legal advice.