Individual Voluntary Agreement Information

Individual Voluntary Agreement Information

The most important piece of individual voluntary agreement information is anything that relates to understanding what an individual voluntary agreement is and how it can benefit a citizen of the United Kingdom. Essentially, this agreement happens to be a contract that is legally binding and which is entered into by a debtor and his or creditors. The individual voluntary agreement is arranged with the help of an Insolvency Practitioner and in a majority of instances, after entering into such an agreement, the debtor can, upon completion of the agreement, become free of all their debts.

Individual voluntary agreement –monthly payments

Another piece of useful individual voluntary agreement information is that once the agreement has been signed by the debtor and his or her creditors then the former needs to pay an affordable monthly amount of money into his or her individual voluntary agreement. This sum of money is calculated by taking into account the debtor's income and expenditures.

Clear off your debts

With the help of pertinent individual voluntary agreement information, a debtor can learn more about this particular arrangement and move towards clearing their debts. The proposal must however first be accepted by the debtor's creditors and after this approval has been obtained the debtor will start to pay his or her monthly payments. The money from these payments will then be distributed by the Insolvency Practitioner to all the creditors according to the terms of the individual voluntary agreement.

End of the agreement

Another interesting piece of individual voluntary agreement information is that once the agreement comes to an end and after having paid the monthly amounts; all outstanding monies owed by the debtor will be written off according to the terms of the agreement. Another piece of interesting individual voluntary agreement information in regard to this agreement is that it will also result in the interests and other charges being frozen which means that the debtor's cycle of debt will be broken.

It is also important that you look for relevant individual voluntary agreement information. This individual voluntary agreement information relates to whether or not you qualify for an individual voluntary agreement in the first place.

After finding individual voluntary agreement information on this subject you will know exactly what conditions have to be met in order to qualify. You should, for example, have unsecured debts that amount to more than fifteen thousand pounds and this money should be owed to at least three different creditors. You must also be able to prove that you or even your partner has sufficient funds to make the payments. These funds should be coming to you from a regular source of income such as your paychecks.

Another piece of individual voluntary agreement information that needs to be understood is that if you own a home then the mortgage payments that you are making will be factored in the form of expenditure costs. Also, you should pay heed to individual voluntary agreement information in regard to changes in your personal circumstances during the individual voluntary agreement period. If this happens, then the insolvency practitioner will take action on your behalf and can if it is necessary even submit a revised agreement plan to help ensure that everything passes off smoothly.

Back to Top