What is bankrupcy
An Iva Dept management program should not be confused with an informal debt management program.
IVA debt management program is a formal process that is administered by a fully licensed Insolvency practitioner, and by its very nature an IVA is a far more conclusive and rigid method of solving debt problems if you are unable to form a successful informal debt management plan.
A successful IVA debt management arrangment will reduce and cap your monthly payments to your creditor to a more affordable repayment scheme set over a period of years (traditionally five), freeze interest rates, stop creditor harassment and, when you complete the IVA debt management arrangement, remove any outstanding debt (typically an IVA debt management will reduce debts by unto 75%).
As opposed to an informal debt management program an IVA debt management plan is a legal binding agreement between you and your creditors, and is administed and overseen by a licensed insolvency practitioner,
Because an agreed IVA is an formal agreement it does not offer the flexibilitie of an informal debt management plan so it is vital that you fully understand your obligations, requirements and possible restrictions that an IVA debt management plan will have on your life, finances and future.
Some frequently asked questions regarding an Iva debt management program.
Q. How much debt do you need to have to get an Iva?
A. There is nothing in UK insolvency law that state that one must have a minimum level of debt for an IVA. Many IVA companies will not take on clients with less than £10,000 due to the minimum fees they charge to creditors. Some larger companies won’t consider an IVA for less than
£10-20,000 of debt.
Q. How much will I have to pay each month?
A. Monthly payments are governed by your disposable net income as opposed to how much you owe. The net disposable income is calculated be the amount of money you have left over each month after essential monthly living costs are deducted from your monthly take home pay and any social benefits ect. that you might receive.