A helping hand at a penniless state

As said by a wise soul, ' poverty is a punishment to a crime not committed'. Times keep on changing like the skies above. But when the changing times are really harsh, it becomes hard to manage the consistency of one's patience and wisdom. At least during the financial turbulences, we must have a helping hand to pull us out.

The state of bankruptcy is more or less a crime, the only difference is that it is not genuinely your fault to be a bankrupt.

When a person is stuck by bankruptcy, he is literally believed to be rendered penniless. At such a state, he can barely make both the ends meet. To make matters worse, the pressure of debts becomes immense.

The UK government has devised a system for such borrowers who have reached the stage of complete bankruptcy and are failing to scratch out enough funds to pay the debts. These schemes are called as the Individual Voluntary Agreements or IVAs in brief. Particularly formulated for people facing acute affects of bankruptcy, this plan facilitates the repayment of debts as soon as possible. The steps taken by the IVA are always unbiased and are in interest of both the debtors and creditors.

By the Insolvency Act of 1986, the IVA scheme was introduced by the UK Finance. This was an answer to the bothersome, embarrassing affects of bankruptcy. The IVA loans facilitate a negotiable talk between the debtor and the creditor.

The insolvency practitioner deal with the situations and normalise the mayhem between both the parties by solving the problem legally. Once a person is declared bankrupt by the court, he can propose an IVA.

A bankruptcy is announced in a local newspaper, but an IVA is not. An IVA is listed publicly on the Personal Insolvency Register and is recorded by the credit reference agencies. The IVA services can help you to reach a much lower level of debt and is usually a small fraction of your original debt. Moreover, till the time your IVA is valid, the creditors are not allowed to harass you. IVA is of great assistance to the bankrupt debtors as it actually freezes the interest so that your debts don't keep on growing. Being a bankrupt means your status would be publicly announced in the newspapers, hence that would be affecting your professional status and also your ability to hold a public office.

Thus, an IVA process is a lot less strict than bankruptcy and the consequences are much less grievous.

Giving a fresh lease of financial life

Caught in the trap of multiple debts, bad credit rating and the issues of bankruptcy and insolvency, then the individual voluntary agreements can be the best option for you. As per the Insolvency Act of 1986, the UK government has formed a set of proposals to devise a formal mechanism of making repayments to the creditors through an insolvency practitioner. Mired in the financial pangs of credit mis-management, IVA debt help comes almost without any additional financial burden for the secured creditors. Unsecured creditors on the other hand have to bear a bit of service charges.

The insolvency practitioner arranges a fact-finding and planning meeting to chart out the IVA loans plan. Mostly these agreements are readily accepted by the creditors. Because the creditors are assured of a larger return than in the circumstances of debtor filing for the insolvency. As the number of bad debtors is on the increase in the UK financial market, there are numerous IVA financial organizations in the UK financial market. Their websites specifically mention their plan of action and other conditions. Those who have already filed for bankruptcy, even they can go for an IVA agreement.

An IVA agreement is lesser expensive than a case of outright insolvency or bankruptcy. By going for it, you will no longer be haunted by the creditors' phone calls, threatening e-mails and other types of terrifying communication from their end. Once the creditors agree to the IVA agreement, they can not take any legally punitive action against you. Further, you are not required to give away the property to the creditors. You can use the equity in the property by going for a home loan secured against the property.

Wipe out debt burden with IVA loan service

In order to avail the IVA loan service you have to meet certain criteria as a borrower. You need to be in debt of at least £15,000 owed to three or more lenders. It is important that you should get best advice when the Individual Voluntary Agreement is chosen. Also the organisation offering this loan service should be professional and independent. It is very important as when you deal with an IVA practitioner, you are bound with an agreement for the time period of five years. So you should carefully understand various facts and clauses of the IVA loan deal before choosing.

The IVA loan service offers the much required respite for a debt ridden borrower. It allows you to make a formal proposal to pay your demanding lenders a significant percentage of your debt over a period of time with easy monthly repayments and after the set period of time you would be free from the debt burden. An Individual Voluntary Agreement enables individuals facing severe debt problems arrive at a legal binding settlement with the demanding creditors with the guidance of an Insolvency Practitioner (IP). If the proposal is approved by majority of the creditors (75% of your lenders) then this agreement comes into being and binds all the parties (your lenders and you) and prevents any further action like repossession.

The rise in the number of people seeking to set up IVA loan service suggests that it is widely viewed as a good alternative to total collapse of financial health like bankruptcy. Indeed, of the 70,000 insolvencies were filed in the year 2007 and out of which one third were IVAs. This agreement allows people in serious debt to come to a formal debt re-payment arrangement with their creditors rather than having to face bankruptcy.

IVA loans service for your unbearable debts

The IVA loans services are specifically designed for those people who find there debt burden beyond control. It is a cost effective alternative of bankruptcy. The Individual Voluntary Arrangement, or in short IVA, is a formal debt solution specifically designed to assist a person who is struggling with unaffordable personal repayments on previous debts. The agreement does this by restructuring the expected repayments to a new affordable monthly payment. It helps the debtor to keep up to date with the priority expenses, such as loans against residential property like a mortgage or rent payment, and essential living cost. This agreement helps the debtor to lead a life without the fear of legal recovery action being taken against them by their unsecured creditors.

As the IVA is a formal arrangement, it protects both parties(lenders and creditors) from trying to make adjustments to the arrangement once it has been agreed. An IVA stops a debtor being harassed by their unsecured creditors. This is because one of the fundamental clauses of the IVA stops creditors from contacting the debtor directly. Once the IVA has begun, all correspondence regarding repayment must be through an insolvency practitioner. The insolvency practitioner is chosen by the borrower according to his choice to assist with the IVA proposal, and the insolvency practitioner oversees or supervises the IVA for its full term.

The IVA loan services will, under normal conditions, last for a term of 5 years. After that time frame the debtor will be considered debt free, even if they have not been able to repay the full original level of debt. This service is especially ideal when the debtor has a property they need to protect from their creditors and repossession. This is because once the IVA has been agreed, and so long as the debtor sticks to the IVA norms, the unsecured creditors are unable to force the sale of the property. Instead the lenders settle for as much equity as can be released through a standard re-mortgage.

One agreement solution of many problem

The Individual Voluntary Arrangements is a legal contract between you and your lenders and is supervised by a Licensed Insolvency Practitioner. The purpose of this agreement is to enable you to reach a compromise with your lenders and avoid the consequences of bankruptcy and other financial adversities.

The agreement enables you to reduce your existing debts to an affordable level and clear them over a fixed period of five years. The compromise should offer a larger repayment towards your total debt burden than could otherwise be expected were you to be made bankrupt. You can even take out a fresh loan of secured category while in an IVA. What’s more, it is a totally private arrangement as nobody needs to know about it apart from you, your IP and your creditors. An IVA ensures that your home is protected from the threat of repossession and your job is not at risk.

You make one single manageable monthly payment, based on your affordability, for 3-5 years. After that time frame, the remaining debt is wiped clean, leaving you completely debt-free. This means that an IVA can write off up to 75% of your existing debts in a convenient manner. However, under the terms of the Individual Voluntary agreement you undertake to contribute towards your debt burden as much as possible within your budget. So in actual practice, an IVA presents an opportunity for you to pay whatever as you can in a manageable way that you can afford.

How IVA helps to become debt free?

The IVA is a legal binding agreement with your lenders to make a single reduced payment each month which lasts for normally 5 years. Once this agreement is in force, lenders are not allowed to add further interest or charges to your accounts. They are debarred from doing this according to law. The agreement is fixed and the lenders can not randomly demand changes to its clauses. The arrangement is governed by the Insolvency Act of 1986 of the UK. A common misunderstanding is that people think undertaking an IVA is like going Bankrupt is nothing but a myth. The IVA loan help is specifically designed to avoid the many issues and stigmas surrounding the financial health collapse like Bankruptcy.

IVA loan help enables you to become debt free in 5 Years. With this agreement the unwarranted telephone calls and payment demands are stopped. Interest and late payment charges are frozen. A single monthly payment structure is prepared for the convenience of the concerned person. This agreement also help to improve the Credit Rating of the borrower. This agreement is fixed and a legally binding one. With this agreement, you have a protection from court action. This is a private agreement and your Professional status remains unaffected.

If you undertake an IVA loan help, it is a private matter between yourself and your lenders. No publicity in the local newspapers is done in this agreement unlike the bankruptcy. However your name can be searched in the insolvency register and this is available on the Internet. Normally you will only be able to undertake an IVA loan help if your total unsecured debt is more than £15,000. In addition to this, you will need to be able to afford a monthly repayment of at least £180.