Individual Voluntary Agreement Settlement

Individual Voluntary Agreement Settlement

Individual Voluntary agreements are not necessarily agreements that need to run their full course of five years. Depending on your circumstances, you can even choose to enter into such an agreement that can be terminated after just a single payment. Such an individual voluntary agreement settlement is referred to as a full-and-final individual voluntary agreement settlement and even a one-off individual voluntary agreement settlement.

Individual voluntary agreement – works like normal IVAs

Initially, an individual voluntary agreement settlement works just like any normal individual voluntary agreement and the debtor will steep need to provide their details to an Insolvency Practitioner. When preparing the full-and-final individual voluntary agreement settlement, it is necessary for the Insolvency Practitioner to ask that the settlement money be transferred to their client's account where they will be held until the creditors are paid after they have agreed to the individual voluntary agreement.

Full-and-final settlement

There are certain circumstances that make it easier for the debtor to enter into a full-and-final individual voluntary agreement settlement. These circumstances are when the debtor does not have too much income at their disposal but can access releasable equity in their property and also when the debtor has insignificant amount of disposable income but can find a third party to introduce them to a big lump sum amount that can be used for the full and final individual voluntary agreement settlement.

Enjoy the benefits

When entering into an individual voluntary agreement settlement the debtor will enjoy all the benefits that an individual voluntary agreement offers them but will also be charged fees that will be levied by the Insolvency Practitioner to the creditors. This is what makes the full and final individual voluntary agreement settlement so popular among debtors. The fees are reduced because the Insolvency Practitioner will not have to supervise the individual voluntary agreement for the entire five years.

Clear your debts

The one-off individual voluntary agreement settlement is also an excellent means of clearing debt problems that have become very serious. Such an option works wonderfully well when the debtor has just enough funds with which to clear a part of the outstanding debt and also when the full five year long individual voluntary agreement is not a feasible option for the debtor.

One-off individual voluntary agreement settlements are of course also known as full-and-final individual voluntary agreement settlements. For any debtor that is in an individual voluntary agreement and who wishes to make an offer for a full and final individual voluntary agreement settlement to their creditors, must first calculate the least amount of money that they will need in order to terminate the individual voluntary agreement at an early date. Besides calculating this amount, the debtor must also be able to make an offer to the creditors that is large enough for them to acquiesce to the offer.

However, before making an offer, the debtor must consult an Insolvency Practitioner and apprise them of the offer. You should however be ready to accept the fact that most Insolvency Practitioners generally are not keen to provide individual voluntary agreement settlement figures because they fear that this may compromise their impartiality.

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