A formal and legally-binding agreement between you and your creditors outlining how you will pay back all debt within a specific time period is called an individual voluntary arrangement (I.V.A.). An insolvency practitioner sets up an IVA. The insolvency practitioner is usually a qualified accountant or qualified solicitor.
When do need an I.V.A.?
There are a few factors to consider before considering an I.V.A. the right debt solution for you. With the ever increasingly competitive marketplace, it has become more difficult to find a good IVA specialist with the right IVA knowledge ideal for your specific debt needs.
A great I.V.A. is required to be flexible so as to your individual needs. Personalized IVA specialist services can be expensive and there a number of risks involved.
The right I.V.A. specialist with depending on the following issues:
- Your income.
- The amount of debt you have.
- Your personal needs.
Hiring an I.V.A. Specialist is the right move when:
- When you have a lump sum of money guaranteed in the future.
- When you don’t want to deal with your creditors directly.
- When two or more separate debts.
- When your debts add up to a large amount that you may not exactly pay.
- When you have at least two or more creditors.
- If you can afford enough money to make IVA payments.
How do you find the right I.V.A. Specialist for you?
The important question to ask is: “how I find the best IVA Specialist for me?” most I.V.A. Specialists work for large I.V.A. companies that use a computer algorithm to determine the best solution for you their client. This, therefore, reduces the amount of personal touch you may require to help you deal with your debt problem.
If you have very sensitive financial issues it is best to avoid large IVA firm and choose a smaller firm.
When hiring an IVA Specialist you need to find an insolvency practitioner to take your IVA proposal to your creditors on your behalf. You can easily find an insolvency practitioner on the insolvency service website or from your local official receiver’s office.
The cost of hiring an IVA Specialist will vary, however, go for insolvency practitioners who offer free introductory meeting. It is also a good idea to contact a few IVA Specialist and inquiry about their estimated prices. It is also advisable to go for an experienced I.V.A. Specialist with plenty of good recommendations. An experienced IVA Specialist will provide you with invaluable advice throughout the entire process.
Benefits of hiring an I.V.A. Specialist?
- It is legally binding, thus it protects your assets like your home, hence, prevents your creditors from forcing you to sell these assets so as to pay them back.
- Prevents legal action been taken against you, hence removing the threat of possible bankruptcy.4
- An IVA Specialist will help you tackle debt to avoid it becoming unmanageable by helping you manage your finances to pay off credit cards, loans, and other unsecured debts.
- An IVA is limited in terms of time and usually last only five years.