Choose the Right Debt Management Company to get a best IVA plan for yourself
When you are looking for an IVA help it means that you are really serious and interested in solving your debt problems for ever. An IVA is a best possible alternative available to you as compared to bankruptcy that remains on your credit report for 10 years during which no lender will lend you money for any purpose. A professional debt management company can set up an Individual voluntary Agreement with your creditors wherein you will have to make one monthly repayment at a considerably lower rate of interest to the company that further pays to all your creditors.
At the end of the duration of this agreement (approx 5 years), all debts that have been registered against your name will also be cleared off by the competent authorities. With regular repayments for five years, your credit score will also rise significantly. No creditor can contact you directly once an IVA comes into force. They can get in touch with your debt management company to discuss any issues but not you.
Aside from this, an IVA also protects you from selling your house, but you may have to release any available equity through re-mortgage. In case you are a part owner in the property, you will be allowed to release the proportion of your part in the property.
All those who owe more than £15000 to more three or more creditors are eligible for an IVA. A debt management company first negotiates with your creditors for an IVA and prepares a proposal depending upon the amount that you can afford to pay back based on your individual circumstances and puts them before your creditors. If 75 % of your creditors agree with this arrangement, the rest of the 25 % will have to follow suit. An IVA usually runs for a period of five years and at the end of this term all the remaining debt is waived off and you become totally debt free.
As IVA is a legal contract, your creditors will not be able to back out from it at any later date as long as you make regular payments according to the terms of this contract. A good debt management company will guide you in the process and will assist you till the successfully completion of your IVA
