Being in debt is the reason when you are not able to afford to make the minimum repayment on all of your exiting debts and meet your necessary outgoings. A Debt Management Iva can be used to resolve any debt problem you may have with your unsecured debts. It is an informal arrangement suitable for people who do not have very significant debts, who may not have high disposable incomes or who expect that their circumstances may change in the near future.
Before, you will need to discuss your current circumstances with an IVA specialist. He will help you establish how much you can reasonably afford to offer your creditor and advises you if an IVA management is likely to be accepted based on the figure. If it is agreed that an IVA is a viable financial solution to your debt difficulties, then your information will be passed to Insolvency Practitioner. IP (Insolvency Practitioner) is financial expert who presents your IVA offer to your creditors.
Later, your IP draws a draft proposal furnishing details of your offer. Here, you will need to agree and sign this if you wish to proceed. Your creditors are then contacted and notified with your intention to an IVA purpose. A copy of your offer is forwarded to each of your creditor. Thereafter, a meeting is held to discuss your proposal. At the meeting, if creditors agree to the proposal, it becomes legally binding for all creditors.
Conclusively, a debt management IVA is a formal arrangement between you and your creditors. The debt management company will try to have the interest charges frozen on your debt and you pay the most that you can afford less your living costs. Your representative will then allocate these funds proportionately to your creditors. A debt management plan may be the right solution.
