Debt Individual Voluntary Agreement

Debt Individual Voluntary Agreement

A debt individual voluntary agreement is pretty much the same as the Individual Voluntary Agreement. In fact, a debt individual voluntary agreement is one of the most efficient ways of finding a solution to your debts. The best part is that such an agreement helps you eliminate your debts without your having to take on additional debts in the form of debt consolidation loans.

Individual voluntary agreement – structured plan

The debt individual voluntary agreement is a structured plan which helps you in eliminating a big part of your debt in a very short period of time and then the remainder of the debt will be divided into chunks that are easy to manage and which will have to be paid off on a monthly basis. It is important to understand that a debt individual voluntary agreement is not a one-size-fits-all kind of debt elimination solution. It actually needs to be tailored to suit individual requirements.

Significant differences

This is why when you check to debt individual voluntary agreements you will find that they differ from each other in significant ways. Even so, this kind of agreement must still be drawn up by an Insolvency Practitioner who is an expert that is qualified to look at the applicant's finances. After checking the applicant's finances, this person will then provide a solution which is the best solution for eliminating their debts.

Legally bound

If you plan on entering into a debt individual voluntary agreement, you must realize that your creditors will also be bound to the agreement in a legal manner. If they enter into such an agreement with you, they must then stop harassing you for their money. They will also have to stop contacting you and if they do try and contact you then they will risk being guilty of a breach of contract and can be severely punished by the law. This is one of the most compelling reasons why a person would choose to enter into a debt individual voluntary agreement.

The debt individual voluntary agreement can help forestall the possibility that the debtor will land in the clutches of debt collectors or debt purchasing firms who are known to be very ruthless.

In order to qualify for a debt individual voluntary agreement, you need to prove that your income exceeds your expenditure and is enough to make monthly payments for the life of the agreement. Furthermore, depending on the terms of the debt individual voluntary agreement, you will need to show that your income is greater than your expenditure by a certain amount.

In order to apply for a debt individual voluntary agreement, you will need to get in touch with a company that specializes in such agreements. Once you are sure that you are eligible for such an agreement you must then provide the company with your particulars. If the debt individual voluntary agreement has been approved by both parties, the debtor will then need to start paying the agreed amount on a particular date each month. In case of default in payments by the debtor then the only recourse left to the debtor is to obtain help from a qualified debt advisor.

Back to Top