Individual Voluntary Agreement Plan

Individual Voluntary Agreement Plan

If you are looking for the right individual voluntary agreement plan, then you will find that these are available in different sizes and shapes. If you already understand a little bit about the Individual Voluntary Agreement and know that it can help to solve many of your debt problems, then you should take some time to find out more about the different individual voluntary agreement plan option which you can choose according to how well they suit your particular needs.

Individual voluntary agreement – legislation

Essentially, an individual voluntary agreement plan is one that has been approved by the government which has passed legislation that permits debtors to consolidate their debts over a given period of time and which also ensures that part of the debt will be written off when the agreement's term expires.

Different types

When checking out the different individual voluntary agreement plan types you will come across those such as a standard individual voluntary agreement plan, equity release individual voluntary agreement plan and full and final individual voluntary agreement plan. In addition, there is also the trader individual voluntary agreement plan and the Scottish individual voluntary agreement plan that you will want to learn more about.

Standard Plan

The standard plan is a fixed five year arrangement in which the debtor agrees to make sixty payments from their income and then the debt will be completely written off at the end of the five year period.

Equity Release Plan

In this individual voluntary agreement, the debtor will agree to release some of their equity from, for example, their property or even their pension pot so as to complete the agreement in the five year of its life.

Full and Final plan

This plan is one in which the debtor may not have the desired income with which to pay into their standard individual voluntary agreement plan over five years but is in a position to offer a lump sum payment either on their own or through a third party. In this way, they can satisfy their debts immediately.

Trader Plan

This individual voluntary agreement is one in which a self employed debtor can opt to continue with their trading activities but without allowing their unmanageable debts to drag their business down. In this plan option, the debtor can include their tax arrears as well as VAT and their trade creditors and also other debts including those related to credit cards and loans and even overdrafts.

Scottish plan

This plan which is also known as the Trust Deed is governed by a separate number of rules as well as regulations. It is a plan that suits residents of Scotland who can take advantage of that country's legislation to get their debts written off in a very quick manner. Instead of the normal five year period, in this plan, the debtor can get their debts written off in just three years.

Regardless of the type of individual voluntary agreement plan chosen by a debtor, it is always necessary that the deal with an Insolvency Practitioner and not just an individual voluntary agreement introducer.

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