The IVA or debt management
plan will be carefully drafted by an insolvency practitioner who will
be properly qualified in these matters and have a working knowledge
of a debt management IVA. All of the unsecured debt and all of the creditors
will be taken into account. The income and expenditure will also be
considered and a monthly balance sheet will be drawn up with the knowledge
of the client and also the creditors. Essential bills will be paid before
any of the creditors are considered. The total capital sum can be reduced
by as much as 60 percent or more, and any surplus income of the client
is used every month to reduce the debt in a painless and controlled
way and on a much reduced basis.
Under recent laws ratified
by H.M. Government, Individual voluntary arrangements (IVAs) have been
made possible. An IVA is an easy alternative to bankruptcy and carries
none of the stigma. It's an excellent way to deal with insolvency or
bad debt issues. Under the law, a properly conducted IVA will immediately
write off sixty per cent (often more) of your personal debt immediately.
Your interest in a debt management IVA would be well rewarded by the
enhancement in life enabled by it.
IVAs or individual voluntary
arrangements are generally set to run over the course of a 5 year period,
though this can be augmented to accord with individual specifications.
North of the border, where these are known as trust deeds or protected
trust deeds, the period is typically 36 months but may be over four
or five years. With both the IVA and also the trust deed the client
is kept safe from their creditors by the law and all debts are completely
and absolutely discharged at the conclusion of the span.