Individual Voluntary Agreement Advice

Individual Voluntary Agreement Advice

Many of us are worried that we will not be able to get rid of our debts but there is hope for us because a skilled debt councilor can provide us with useful individual voluntary agreement advice. In addition, such a person can also explain different options that are available to you. They must however provide explanations without involving any complicated jargon. The first piece of individual voluntary agreement advice that you should look for relates to finding out what an Individual Voluntary Arrangement really is and how it can help you.

Individual voluntary agreement – legally binding

An Individual Voluntary Agreement is an agreement that is legally binding and which allows the debtor to make monthly (and lower payments) to creditors who are owed unsecured debts. In this way, the debtor can clear off their debts in a period of time that cannot exceed five years.

Stop creditors from harassing you

When you are involved in an Individual Voluntary Agreement you will realize that this agreement legally forces the creditors to stop badgering you for payments of their outstanding amounts. In addition, the creditor will be made to cease adding any late payment fees to the account of the debtor. When seeking individual voluntary agreement advice, you should find out what you are obliged to do in regard to the creditors contacting you in respect of their debts.

No more contact

The best piece of individual voluntary agreement advice is that the creditor is not required to make any contact with the debtor regarding the debts owed by the latter. This means that you, the debtor, are assured that after signing the Individual Voluntary Agreement that the creditor will not be entitled to make contact with you by email, fax, telephone or mail. Any correspondence between the creditor and the debtor must be routed through an Insolvency Practitioner and more particularly through their office.

Paying off the debts

You will also need to check with an expert about what happens when the outstanding balances have been paid off. Here, you will get individual voluntary agreement advice to the effect that after the Individual Voluntary Agreement has been completed the creditor must then write off any outstanding balances which means that the debtor can even enjoy a seventy percent waiver of their entire debt.

A debtor must also seek individual voluntary agreement advice regarding the best size of their monthly repayments. Here, you will receive individual voluntary agreement advice to the effect that the monthly repayments will be calculated by asking the debtor to provide all necessary documents and based on the content of these documents, the monthly repayment will be calculated. The important point is that the monthly repayments must not exceed the paying power of the debtor.

If you are interested in entering into an Individual Voluntary Agreement you must obtain individual voluntary agreement advice regarding how to qualify for this agreement. First of all, you will receive individual voluntary agreement advice regarding the minimum amount of debt which will qualify you for this agreement. If your debts exceed fifteen thousand pounds, then you can qualify.

In addition, you need to show that there are at least three creditors that you owe money to and the debtor must also prove that they have a regular income which is not entirely dependent on any kinds of benefits.

A trained Individual Voluntary Agreement advisor is the best person to obtain individual voluntary agreement advice.

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