This article will outline how an individual with debt problems can apply for an IVA. However, let’s start with the basics. If you are reading this article, this means you’re interested in getting an IVA – so let’s discuss the IVA and how it works.
Applying for an IVA Online
You should discuss any debt solution with a qualified debt adviser. An IVA doesn’t necessarily, fix money problems for everyone. There are different financial debt solutions for different individuals – from payment plans with creditors to bankruptcy. Therefore, getting advice is crucial.
What is an IVA?
An Individual Voluntary Agreement is a mechanism that allows you to “freeze” your debt and agree to pay them back over a period of months or years. Any money you owe thereafter is then written off.
Anyone can apply for an IVA if they can agree to pay as much as they can towards a debt. This doesn’t mean you are chased for the full amount. To be approved you will need to have regular income – this is because IVA periods usually cover 60 to 72 months, between five to six years.
A lump sum payment can also be used for an IVA.
An IVA application can provide the ultimate debt help solution The IVA is set up by professional Insolvency Practitioners – they work with you by going through your finances, engaging with your creditors and getting approval for your IVA repayment plan.
You should note that an IVA is a legal agreement and as such, breaking it can have drastic consequences for both you and your credit rating in the long-term. It should also be noted that, depending on your circumstances, sometimes creditors can disagree with your plan and can walk away. But, once both sides sign this agreement neither side can back out – so get advice to make sure this pathway is right for you.
What Debts Can IVA Debt Help Support?
You can use an Individual Voluntary Agreement to pay off the following types of debt:
- Personal unsecured loans
- Credit Cards
- Council Tax arrears
- Overdraft Debt
- Store Card Debt
- Hire Purchase Debt (if you don’t have the asset anymore)
- Catalogue Debt
- Mortgage Debt (if you have sold a property and still owe money
- Tax debts
However, there are some kinds of debt that you can’t repay with an IVA. They include Student Loan repayments, court fines, car financing, child support debt, among others.
How to set up an IVA with Angel Advance
When working with Angel Advance and our Insolvency Practitioner you will need to pay a fee to the IP working on your case, this will be taken from your monthly payments, once the IVA has been agreed.
If you would like to talk about your debt issues or are looking for debt help, why not get in contact with us today? Our website is full of friendly information that can help you make sense of the IVA process, what’s involved, and how it can help turn your financial affairs around – helping you start a new, refreshed financial future.