The financial situation of many individuals has not
been stable due to the many instabilities into the economic sector which of
course will definitely affect the operations of firms, companies, organizations
and the likes, leaving the workers of such companies at the mercy of the
economic situation and many business owners whose businesses are not robust
enough may have to go into serious financial difficulty. This situation always
leads debts being incurred and many are faced with the challenge of repaying
such and get out of debt free from the option of bankruptcy.
The government of the United Kingdom, having seen
the possibility of an increase in the rate at which people get into debts has
made a provision on how the loans borrowed and debts can be repaid without much
stress on the household of the debtor. The individual voluntary arrangement is
a formal debt repayment means, which constitutes the presentation of a
repayment proposal to the creditor through an insolvency practitioner. As soon as
the creditor agrees to the terms of the repayment, then the payment starts with
is usually monthly over a period of five years maximum. This is stressful for
regular income earner and makes them get out of debt free.
There are conditions that must be met in order to
get a debt settlement through the individual voluntary arrangement. The debtor
must of necessity have a regular source of income monthly, which will be used
as the basis for the repayment. The IVA companies in order to validate the
claims of the debtor concerning his financial standing ask for the bank
statement for the last six months, last three months’ pay slip, details of
debts and a means of identification. These are required by the IVA company in
order to process the application for an IVA and get out of debt free. Unsecured
debts covered by an IVA include credit cards, overdraft debts, council tax
debts, old mortgage debts, unsecured loans, etc. Click here getoutofdebtfree.org/iva/
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