An IVA is simply an agreement that is legally binding. What
this implies is that if you enter into such an agreement, whichever firm you
owe money would not be able to take any form of action against you. They would
also not be able to make contact with you as regards payments as long as you
maintain your payments according to plan. Creditors do not have the legal right
to go after you beyond the arrangement, meaning that every contact that asks
for payment ought to cease. It is also worthy of note that your debts can be
cleaned off after about 5 years.
What is usually
proposed is 60 monthly payments and the moment it is completed, you will become
free from all forms of debt. However, in the event that you are not able to
release any equity from your property, you may have to pay 12 other payment.
There is also the risk of your arrangement failing if you do not carry out all
the payments, also, all of your debts will not be cancelled and you could face
a scenario where there could be a reapplication of interest charges.
Click here to know more about #individualvoluntaryarrangement.
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