An IVA is a form
of debt relief plan set up by the government to provide a solution to
the problem of personal debt and to deal generally with the growing
issue of individual insolvency. A debt cutting IVA is considered to
be the most assertive form of debt management programme because of its
ability to legally write off off a huge amount of the debt at the start
of its term.
The needs of one
household or one individual can be vastly different from the needs of
another person or household. Any debt cutting IVA advice given must
take into account the diverse nature of the situation in which people
find themselves.
Normally an IVA
will be set to run for sixty months and after this has completed all
the debt is discharged from a person's credit history. During this time
banks are not permitted to pursue the debtor. The IVA carries with it
all the advantages of bankruptcy and none of the drawbacks.
A debt cutting IVA
will write off the bulk of a person's debt at the start of the programme
(although be wary of the claims made in some circles: it is rarely much
more than 60 or 65 per cent of total unsecured debt which may be 'written
off' in this way). All good IVA advice of this nature will make sure
you get the best results with the lowest monthly repayments together
with the greatest percentage of debt write-off.
So fill in the form
for impartial and independent advice for your own circumstances.
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Debt Cutting IVA
Our economy is a
very complex entity. Economists and scientists of many types try to
understand how the whole thing works daily. It has been compared to
a vast computer. Arguably economic practice impinges upon social and
political imperatives and such things are mainly governed by the society
that we live in. Our community at the moment is calibrated towards successful
endeavours and that generally means exposure to risk. For as long as
we have this aspect of risk we also have to live with the terrible prospect
of debt, individual and corporate. Use of a debt cutting IVA is designed
to alleviate this risk somewhat.
A great advantage
of an agreement of this sort is that it may instantly diminish the debt
by a fair percentage. Normally this is as high as sixty per cent, often
more than that. This huge cut in debt burden makes a substantial difference
and is the chief thing which differentiates this from an otherwise normal
management plan. Therefore people looking for debt relief would be best
advised to apply for this rather than a standard debt relief programme.
Most types of debt
cutting IVA will normally be made to last over a period of sixty months,
but all too often this will vary according to circumstances. At the
end of this period the debt is considered to have been paid off in full
and the client cleared of all debt records. Any debt records registered
corresponding to the client's name must be struck from the credit records.
A number of disciplines
have emerged relating to insolvency, including the legal sector and
newer professions including consultants. All such experts have their
own strengths and weaknesses. Each one will have their own area of expertise
which you should use to your best advantage. Making usage of a debt
cutting IVA should ensure your recovery is much easier.
In order to qualify
for a debt cutting IVA the applicant must be able to demonstrate earnings
in excess of a threshold amount and have arrears with a total value
of more than a certain sum and not more than a specified maxima, and
such figures may alter from one insolvency practitioner to another.
Usually the income must exceed the repayments after the required bills
have been paid including the mortgage and utility bills. The usual minimum
amount of debt is about £2,000 though this can vary. A ceiling of £50,000
is sometimes stated, although by going through a third party the client
will be steered towards the best service to look after their individual
situation.
Creditors are not
allowed to contact the applicant when the debt cutting IVA comes into
force. Creditors are not allowed to pursue the debt in any way, and
if they insist on doing so they will be breaking the law and can be
penalized severely, which may include a fine or possibly loss of their
licence if they are a debt collecting company. The client always has
this assurance in law to prevent the phone calls and endless letters
that these people use to harass and intimidate their prey.
All governments
try to help people who suffer from debt. There are recognised schemes
like The various voluntary arrangements to take care of the procedures
of both corporate and personal insolvency and to try and palliate what
is recognised as a difficult procedure, and a debt cutting IVA can be
part of this. The aim is intended to be toward protecting assets wherever
possible and also in safeguarding the property of petitioners using
legal measures. This applies to both private property as much as the
assets of businesses.
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