Days before, people ran into debt problems by divorce or having a business that failed. Time has changed, and so do the lifestyle of the people, reasons such as accruing debts, having paid for varied purposes i.e., home renovation or improvement, children’s education, and infrastructural development of business. Problems erupt when people start spending out of control, and graves out the sense of incapacity to repay the amount borrowed. Further, to reduce the effect of such malaise, the debtors search out or contact reputable debt advice agencies which make assurance of offering IVA (Individual Voluntary Arrangement) debt help. It is an essential financial tool which helps in an organised repayment criterion for stipulated time frame.
An IVA debt help has been given legal patronage, and to this effect debtors are allowed to make their monthly payments on reduced rates to their creditors. The repayment period stipulated by the lending authority under the condition of the IVA debt help is normally of 5 years. However, on the formal request of the debtors, the lending authority is generous enough to consider the extension of the time period.
The process of IVA debt help normally takes to be completed within a short time frame, generally a few weeks to one month. However, the time period can be flexible to extendable to a little longer depending on the response time of the debtor, and the workload of the Insolvency Practitioner. The Insolvency Practitioner then lodge the IVA debt help proposal with the court, and inform all the debtor’s creditors of the debtor’s intention to propose Individual Voluntary Arrangements.
Insolvency Practitioners do not work for free. However, this does not mean that you will be facing a bill if you want to undertake an IVA debt help. Many Insolvency Practitioners will take their fees from the money that you agree you can afford to pay each month. You will therefore not have to pay more than your agreed monthly payment.
Payments made into the IVA debt help by the debtor are monitored, and distributed among the concerned creditors by the insolvency practitioner. Dispensing of payments is distributed to the creditors on a pro-rata basis under the agreement of the conditions, until the IVA debt help ends.
After the IVA debt help, the debtor is free to begin upgrading his credit value, and by providing a copy of notice of completion certificate to the main credit agencies, a note can be placed on his credit file, informing of the successful accomplishment of his IVA debt help.
Generally, debts can be included within an IVA debt help. These include but are not limited to:
• Personal loans
• Student loans
• Credit cards
• Store cards
• Overdrafts
• Catalogues
• Outstanding balances after home or vehicle repossession
• Business loans for which you are personally liable
Author: Johan Jeuring
