Insolvency Individual Voluntary Agreement

Insolvency Individual Voluntary Agreement

Before dealing with insolvency individual voluntary agreement, it is important to learn more about what individual voluntary agreement really is. This agreement is a formal arrangement between a debtor and his or her creditors and is an alternative solution to bankruptcy. Essentially, such an agreement involves paying off part of the debts owed to creditors for a certain period of time. At the end of the life of the agreement, the unpaid portion of the debt will be written off.

Individual voluntary agreement –legal procedure

An insolvency individual voluntary agreement is a legal procedure that allows the debtor to reduce their debts and it also puts an end to paying additional interest charges. It also means reducing the monthly payments that are to be made by the debtor. An insolvency individual voluntary agreement is also a means of keeping your insolvency private as this information will not be publicized in this agreement.

Best solution

Many would agree that an insolvency individual voluntary agreement is the best way to solve all or most of your debts. In particular, an insolvency individual voluntary agreement suits those who are owners of homes and who wish to protect their equity in their homes. This is because an insolvency individual voluntary agreement will help to protect the homeowner who will not need to give up their equity in their property because of their poor financial situation.

Good reasons to opt for this agreement

There are some good reasons to use an insolvency individual voluntary agreement. For one, it is a legally binding agreement that can help to reduce your debt by as much as seventy-five percent. It also enables you to reduce the amount that you have to pay on a monthly basis. In addition, after entering into an insolvency individual voluntary agreement you can budget your outgoings in a more effective manner.

Before entering into an insolvency individual voluntary agreement, it is important that you learn about various aspects of an insolvency procedure – right from the planning stage to the implementation stage. A good company can provide suitable advice and also assist you in different ways.

An insolvency individual voluntary agreement usually works for those debtors that have already been made part of insolvency proceedings which can be anything from a prior bankruptcy, an individual voluntary agreement or even a deed of arrangement. In such cases, you will do well to get in touch with existing or previous supervisors or trustees. Personal insolvency is something that affects those people that have loan arrangements that they cannot pay.

In case of insolvency, the person will risk losing their main assets. The good news is that it is not always necessary that insolvency will end up with bankruptcy. An insolvency individual voluntary agreement can provide certain amount of protection against those creditors that are impatient to get their money repaid.

With a normal insolvency individual voluntary agreement, the debtor can agree to a payment plan that offers between fifty and ninety-five percent reduction in their debts. However, a bankruptcy order will take precedence over other forms of debt recoveries.

Back to Top