If someone has debts to pay, the creditors have the right to claim it legally. Creditors even can file a case of bankruptcy on him that can also lead to the loss of his assets and property.
Many people suffer from this situation and do not know the solution. An IVA (Individual Voluntary Agreement) is a legal document that has protective value towards the debt payer.
An Individual Voluntary Agreement is a solution to such condition that it stops the creditors from legal procedures. It provides you a time limit to pay the debt at reasonable and affordable prices. The IVA agreement helps in protecting your assets and properties as well. Following criteria is used to get an IVA.
The Individual Voluntary Agreement is not applicable to all kinds of debts. Like you, an Individual Voluntary Agreement cannot be got for such debts: student loans, magistrates’ court fine child support arrears. You can apply for an individual voluntary agreement for non-priority debts. Non-priority debts include store cards, charge cards, personal loans, credit cards, and bank loans.
You can also apply for the Individual Voluntary Agreement to pay for the priority debts. Tax debts, electricity debts, gas debts, and council tax arrears are a type of priority debts. Hire an insolvency practitioner that helps you to deal with the situation legally. He is an experienced and professional person that deals with uh situations successfully. He will make a proposal regarding your concerns and benefits, then apply to the court.
You can only capable to apply for an Individual Voluntary Agreement if you have some assets. It means you can show some assets as security. In case you cannot pay the debts, you can pay the debts by selling your assets or property like a house.
It is necessary that you tell our insolvency practitioner about all your assets. So that he can help in protecting a few of your assets. If you do not aware him of all the assets, it is also considered as fraud by law. It is the duty of insolvency practitioner that he makes a proposal convincing enough for creditors to agree.
Mortgage or secured loans
Usually, mortgage debts are not included in the eligibility criteria for an individual voluntary agreement. But still, you can add this in the agreement with the permission of the creditors. Secured loans mean your house will be taken if you cannot pay the debts on time.
Regular source of income
If you have a regular source of income per month, then you can apply for an individual voluntary agreement. You have to show some asset or source of income by which you will pay the debts gradually within the time limit.
It is also a point that an Individual Voluntary Agreement is not suitable for you if you have not fixed income source. If your income changes month to month, then it will be problematic to proof it as your security.