People with very huge amount of debt owing to more than 3 creditors are eligible for applying individual voluntary agreement. Individual voluntary agreement is just an agreement which is agreed between the debtor, who finds it very difficult to manage his huge monthly repayments and the creditors, who offered money to their debtor. Once you have obtained your individual voluntary agreement then you have about 60 months [5 years] to repay all you debt. The amount that you need to repay every month will be calculated depending on your family circumstances and other factors that affect you from paying monthly repayments. After the IVA period the debtor is obviously free of all his debts. Though he has not repaid the exact amount that he borrowed, his creditor will offer a write up that there are not pending unpaid debts with that particular debtor. In this way an IVA will be very helpful for you to pay back all your debts without any problems. Also you may feel very free every month since you are going to pay only a calculated and affordable small amount to the creditors.
Who are all eligible for an IVA?
In order to claim or apply for an IVA you have to live in United Kingdom more specifically in Northern Ireland, Wales or England. Also anyone having their total debts of more than 15,000 pounds that are owed to at least three creditors is eligible for getting an individual voluntary agreement. Another important criterion is that you have to show the IVA offering agency a proof of your monthly regular income. That is you should either be an employee or you must be self employed. If everything is perfect you can easily avail your IVA. Also the fees for the IVA agency will be taken from the amount you pay every month.
