For the basic introduction of individual voluntary arrangement or also known as IVA, in short, is basically a formal and legal form of agreement that is binding between the individual that is in a loan and among the creditors.
Creditors are those who have given the money as a loan towards the individual. This agreement is basically the media between you and the creditors for the payback of the loans over a specified and certain time period.
And also another basic feature of the individual voluntary arrangement to be set as required as that it should be and it must be done by the hands of an expert insolvency practitioner.
When IVA is suitable
The following checklist is to be done thoroughly in terms of anyone who is willing to get into IVA for repayment of the loans.
The individual must have at least two of the active loans.
The overall amount for the loan that is taken by the individual has to be an amount of more than 10000 Euro.
It is also required that at least two or three different creditors are existing in the overall loan amount.
In a situation when the individual does not desire to deal with the respective creditors in a direct manner.
Also, it is quite recommended in a strict manner that the individual that is willing into getting into a contract of IVA is able to provide the regular payment on the specified time and also possess enough money.
As it is a contract with the legally binding nature It means that all of the existing creditors are must stick to the provisions of the contract and they are not able for any type of out of the contract pursuing towards the individual for the repayment of the debt.
IVA is a contract with specified or limited time and the individual is only required to repay for the specified period as stated in the contract of IVA which is usually 5 years.
The creditors are more likely to accept the fact that the path of the loan which is mentioned in the contract is going to be repaid and the rest on the left amount is going to be written off.
Also, it is recommended for anyone for the proper consideration about IVA might not also be quite suitable for in such a situation when the individual is working as an employee as an accountant or any type of solicitor. Terms and conditions with the contract of the IVA are strictly recommended to be read by the individual for the contract and also to find out if the individual is actually being prevented from any type of continuous of the job if he or she is under the contract of IVA.
As it is also recommended to consider the future time that the circumstances of the individual that is willing to get into IVA can be changed.
The individual person that is willing to get into the contract of IVA is also recommended to have a proper commitment towards the payment of the fixed amount throughout the time period that is specified in the contract. And if the overall amount of income is not regular in nature on the term which is going to take place of the IVA contract it is not recommended that the person should consider this as an appropriate way.
IVA have usually high amount of costs to bear for the individual as the reason is that it is to be set up only by a qualified practitioner that has expertise in the section of insolvency. But this is very much necessary for a person who is getting into the contract of IVAs.