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robertsmith
Joined: 04 Oct 2009
robertsmith's page
Posts: 11
150 Magic Points
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Subject: What does mean by Individual Voluntary Arrangement?
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Sun Oct 11, 2009 4:33 pm
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| What does mean by Individual Voluntary Arrangement? |
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goodnatured
Joined: 03 Nov 2007
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Posts: 3735
10 Magic Points
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Mon Oct 12, 2009 1:28 am
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| I would think that it is a payment arrangement or an agreement that you enter into voluntarily. If it is with a creditor then it may be a payment arrangement. Hope this helps. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Mon Oct 12, 2009 1:28 am
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Hi Robert..hope this helps:
An Individual voluntary Arrangement (IVA) is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled.
This is usually set up by an insolvency pratictioner (IP) |
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SIA
Joined: 18 Oct 2009
SIA's page
Posts: 59
1278 Magic Points
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Fri Oct 23, 2009 5:00 pm
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Individual Voluntary Arrangement helps people who are struggling with their monthly debt repayments.
An IVA can do this because it is an agreement between the person who is struggling, the debtor, and the people they owe the money to, their creditors.
Creditors are asked to accept lower monthly repayments, which are based on the affordability to the debtor, rather than what the debtor was contracted to pay in the old agreements. If a 75% majority of creditors, in value of debts terms, agree to the new offer of lower monthly repayments, then the other creditors must follow even if they voted against the idea, and they are legally bound by the new agreement. |
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SIA
Joined: 18 Oct 2009
SIA's page
Posts: 59
1278 Magic Points
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Fri Oct 23, 2009 5:01 pm
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| An Individual Voluntary Arrangement has a fixed term of 5 years after which the debtor is considered debt free, even if they have not paid back all the money they owed at the beginning of the IVA. |
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SIA
Joined: 18 Oct 2009
SIA's page
Posts: 59
1278 Magic Points
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Fri Oct 23, 2009 5:04 pm
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Advantages of Individual Voluntary Agreement are-
1) It stops interest being charged on the debts.
2) It stops late payment charges on the debts.
3) It is a fixed term of 5 years.
4) It also stop the creditors being able to take legal action against the debtor too. |
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The mom
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Sat Oct 24, 2009 3:07 am
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| Is this something that I can offer to the collection agencies, or is this something they need to offer to me? |
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Margaret
Joined: 13 Nov 2009
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Posts: 55
992 Magic Points
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Sun Nov 15, 2009 11:24 am
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Individual Voluntary Arrangement is legally binding agreement between the debtor and their creditors. It was introduced as part of government legislation to help those who are struggling to repay unaffordable debts and offers a way to avoid bankruptcy implications.
Please contact our Individual Voluntary Arrangement team directly on 0800 048 1766. |
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