Individual Voluntary Agreement Info

Individual Voluntary Agreement Info

Today, more and more people in the United Kingdom are looking for individual voluntary agreement info. This is because such an agreement offers a number of benefits and it also ensures that the person that enters into such an agreement gets to clear off their debts without needing to declare bankruptcy. The most basic piece of individual voluntary agreement info that you will need to use before proceeding further with an individual voluntary agreement is that this agreement is formal and legally binding and is entered into by a debtor and his creditors.

Individual voluntary agreement –gist of the agreement

The gist of the agreement is that the debtor will agree to pay his creditors a certain sum of money in monthly payments and for not more than five years. At the end of the term of the agreement, all outstanding debts will be written off including the unpaid portion of the debts.

Who is eligible?

One should also get individual voluntary agreement info regarding who is most eligible for such an agreement. Ideally, this agreement works best for those who have debts of over fifteen thousand pounds and whose debts are hard to write off or pay off.

No need to pay off the entire debt

Another piece of important individual voluntary agreement info that one should know about is that although the debtor is not required to pay off their entire debt, the individual voluntary agreement does ensure that the creditor receives as much of the debt as they would have obtained had the debtor filed for bankruptcy.

Who approves the proposal?

Another vital piece of individual voluntary agreement info is that when the debtor makes the individual voluntary agreement proposal to the creditors, it is necessary that approval for the proposal is obtained from seventy-five percent of the creditors. So, if the debtor proposes to pay off more than what the creditors would get from the debtor going bankrupt, then the proposal will have a better chance of being approved.

Other than that, there is another important piece of individual voluntary agreement info that all the parties to the agreement should know about. This individual voluntary agreement info is that the debt will be frozen at the date when the proposal has been accepted and interest will, in most cases, also stop accruing. Such pieces of individual voluntary agreement info show that the debtor stands to gain a lot from this agreement which will help to put a stop to spiraling and uncontrollable debts.

You need to also pay heed to another piece of individual voluntary agreement info. This individual voluntary agreement info relates to the Insolvency Practitioner who must be licensed and has to be involved in the individual voluntary agreement.

It is also important to make use of individual voluntary agreement info related to the cost of an individual voluntary agreement. The good news is that the debtor is normally required to only make affordable monthly installment payments to the insolvency practitioner and that this payment must be made from the debtor's surplus income and after he has deducted living expenses. The agreement can only last for a maximum of five years.

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