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Joomla Template by Create a Website Main Menu IVA Process Get Out of Debt Individual Voluntary Agreements in Focus The IVA Application Process About IVA Site Map How To Complete The IVA Approval Process An Individual Voluntary Agreement is a financial option in the UK that helps a person avoid bankruptcy. The Insolvency Act 1986 sets laws that uphold a process where a debtor can enter into a legal agreement with creditors in order to pay off debt in a timely manner. A debtor can apply for the settlement plan and may be debt free in five years. Unlike with bankruptcy, an IVA will let a person uphold a job and avoid the embarrassing stigma. However, all approved IVA cases are made available to the public. The IVA Approval Process It is essential for a debtor to understand all of the rules and regulations associated with this type of agreement. An Individual Voluntary Agreement begins with an application that must be completed by a debtor, which includes all truthful information. An agreement will be voided if it is uncovered that a debtor is not truthful regarding all sources of income or assets. It ends as the person makes all of the necessary payments on time. During the IVA approval process, a debtor must choose an insolvency practitioner. This person acts on behalf of the debtor to set up an agreement, attends meetings with the creditors, and deals with court issues. Statement Of Affairs And Proposal Of Individual Involuntary Agreement When a person qualifies for this type of agreement, a draft will be written that discloses all financial information. This will include all debts, assets, expenses, and revenue. Basically, everything that affects the debtor's financial portfolio should be mentioned. A person may be able to keep a car, pension, and other assets. However, it is important to discuss these issues with the IP. The statement of affairs may be written by the debtor or with help from a financial adviser. After it has been approved by the Insolvency Practioner, the proposal can be written for approval of creditors. This must include a plan of repayment. Court and Creditor Approval An Individual Voluntary Agreement begins with the application that must be approved by the insolvency practitioner and creditors. When presented in court, all information will be verified, so that a legal order can be established for creditors. After court approval, a person can no longer be harassed by creditors. The creditors will meet to discuss the arrangement with the IP. The creditors will vote on the proposal and modifications can be made at this time. In order for the agreement to become legal, any creditors that hold 75 percent of debt must approve the order. If it is approved, the agreement will become legally binding. Insolvency Practitioner The most important person that is involved with this this arrangement is the Insolvency Practitioner. This person acts as an adviser and supervisor over the entire procedure. When a person takes control as an
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