Going through insolvency processes is extremely challenging without the Individual Voluntary Agreement. This legal tool allows an insolvent to handle their arrears in a structured way so that there is no need to file for bankruptcy. The Individual Voluntary Agreement is a way to pay off debts in a manageable time frame as well as time limit. Anyone who is able to maintain the payments for these debts successfully for an agreed period of time can have the remainder of the debt forgiven. So what are the steps to complete the process of completing an Individual Voluntary Agreement’s terms? This website would provide more info.
Steps to Follow
- Get yourself some legal advice.
Just googling what an IVA is the first step of starting the process. However, it is prudent to retain the services of a legal professional specifically one who has some experience with insolvency cases. This is because the agreement is a legally binding promise to pay off one’s debts. This advice should help you know whether or not you are actually suitable for the Individual Voluntary Agreement.
- Find an insolvency practitioner.
Once you determine whether or not you are suitable for an IVA, you should get an insolvency practitioner to help you through the process. The insolvency practitioner refers to an individual who is legally allowed to work in insolvency processes related to debtors. These individuals must be licensed professional whose only focus is to act as the intermediary between the creditors and the insolvents. They may be liquidators, accountants or even lawyers by profession aside from being insolvency practitioners.
- Make your best offer!
It is crucial to make your very best offer to your creditors. Creditors are not legally required to accept your Individual Voluntary Agreement. This is basically a plea to the creditors to allow the debtor to slowly pay off their debts over a period of time. Therefore, making your best offer is the only way to get your creditors to accept your terms and conditions.
- Go through the process.
The process involves making your offer through the insolvency practitioners. The document is presented to the group of creditors for perusal. There is then a vote on whether or not to accept the agreement among the creditors so that if at least 75% agree, then the proposal is accepted although some alterations may selected. Once you receive the feedback from your practitioner, make the agreement legal. Your creditor becomes a supervisor for your IVA agreement.
- Pay your dues!
Of course, you must now pay the money you owe. You are legally required to hand over the required money to your insolvency practitioner who will then disseminate the funds among your creditors. You have to ensure that you maintain your payments in a timely manner so as not to suffer through any further financial punishment.
- Be patient.
Patience is the key in this process given that it is a long term process lasting over five years. At the end of this however, the debt can finally be forgiven!