Individual Voluntary Agreement Loan

Individual Voluntary Agreement Loan

More and more people in the United Kingdom are relying on loans of different kinds to help them take care of their expenses. If a person does not earn a high enough income it is certainly going to become difficult for them to manage their finances and this is what compels them into taking loans. Unsecured loans, in particular, are a very popular option as these loans are easy to obtain. In addition, these loans carry less risk. However, should your unsecured loans become unmanageable you would then need to look for a solution which fortunately is available in the form of an individual voluntary agreement loan arrangement.

Individual voluntary agreement –a better solution

Essentially, people that have certain amount of unsecured loans will need to use individual voluntary agreement loan solutions. Rather than taking fresh loans in order to pay off their unsecured debts, it is better that they look at the individual voluntary agreement loan arrangement. This arrangement does not require taking a fresh loan in order to pay off the unsecured debts.

Legally binding agreement

Rather, with an individual voluntary agreement loan solution, you are entering into a legally binding agreement with your creditors to pay them a certain sum of money for a maximum of five years. Once you have made these payments and the five year period comes to an end, then the entire amount of unsecured debt including whatever part of it remains unpaid will be written off.

Wipe off the entire debt

Thus, with the help of an individual voluntary agreement loan solution, you can wipe off your entire debt and in this way regain full control over your finances in just five year's time. What's more, by entering into an individual voluntary agreement loan solution, you are also spared the need to file for bankruptcy in order to regain control over your finances.

You should also not wait for your main creditors to come after your assets because you can actually salvage them by entering into an individual voluntary agreement loan arrangement. The individual voluntary agreement loan arrangement is a good alternative to filing for bankruptcy and is really an excellent debt relief solution that will benefit the debtor and without needing to compromise the claims being made by the creditors.

The individual voluntary agreement loan arrangement is administered in the UK under Part Eight of the UK Insolvency Act of 1986. This kind of agreement helps the debtors who can formally propose to their creditors that they will repay the outstanding money in a certain way and under the guidance of an Insolvency Practitioner.

The individual voluntary agreement loan arrangement allows the debtor a chance to avoid suffering from the serious effects of bad credit. Having to part with their assets (like a home and car) is one of the most serious consequences of having bad credit. So, with the help of an individual voluntary agreement loan arrangement, it is possible to clear off your debts, hold on to your main assets, and in a certain period of time you can become debt free without needing to go bankrupt or even take a fresh loan with which to pay off the previous outstanding amounts.

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