An IVA or Individual Voluntary Arrangement is a formal agreement between a lender and a borrower. With this arrangement, a borrower makes reduced repayment on his debts. Generally, this arrangement has to be set up by a licensed professional such as an Insolvency Practitioner. Chance For Loans gives a borrower access to such a practitioner who would help the borrower to get out of a financial quandary with IVA approval.
An IVA may help a borrower write-off up to three-fourths of the total outstanding debt. However, individual cases vary and it is up to a lender whether or not to allow a borrower that much special consideration. An IVA helps a lender by requiring the borrower to repay an affordable monthly instalment for a certain period. Once the final instalment for the agreed amount is settled, the outstanding debt is automatically written off.
Generally, an IVA is arranged for five years. This arrangement gets a borrower out of debt without any repercussions. When a borrower has repaid the agreed-upon sum, he is not required to repay the outstanding debt amount. However, he has to go through a rigorous ritual of answering many questions pertaining to income and personal finance to get IVA approval. Based on the answers, the Insolvency Practitioner will be able to move forward with your IVA application.
As an IVA is legally binding on both the lender and the borrower, the approval of the arrangement needs an order from a court of law. Only after getting approval from a court is an IVA legally binding. After an IVA is in place, no lender in the UK may drag you to court for inability to repay the loan amount. However, if you are unable to repay the agreed-upon sum as on the IVA on or before the due date, you may be dragged to court. But many consider it as an easy solution to get out of financial mismanagement.
An IVA’s legal nature makes it more binding for both the lender and the borrower. Thus, it differs from debt management plans, which do not have any legal hassles. If there are multiple lenders, the role of an Insolvency Practitioner is to collect the monthly due from the lender and re-distribute the amount amongst the lenders. Apply online for an IVA through us today. You need not pay a fee to avail of this service at Chance for Loans. Get your IVA processed through Chance for Loans today, and ensure a brighter financial future.
