07:48 03 October 2013
An individual voluntary agreement or IVA is an agreement between the creditor and the debtor, wherein the debtor shall make regular payments for his debts given a time frame. This agreement shall be made in the presence of an insolvency practitioner or IP who will in turn divide the payments between all your creditors. Your IP will make assessments of your financial status and shall make a proposal to your creditors.
How much is the cost of IVA?
Under an IVA, any available financial resources after all household bills have been settled shall be used for the monthly payments to all creditors at a given period.
IVA is a legal option which you can consider when you can no longer manage all repayments to all your creditors. After making all agreed payments, any balance in your debt shall be considered paid.
You need to make additional payments if you have a property which has equity before your IVA ends.
How to acquire an IVA
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