What is an Individual Voluntary Agreement

What is an Individual Voluntary Agreement

Unless you understand exactly what is an individual voluntary agreement, you will not be in a position to solve your debt problems without filing for bankruptcy. The good news is that learning about what is an individual voluntary agreement is not difficult as there is plenty of information and guides available that can explain the meaning of an Individual Voluntary Agreement.

Individual voluntary agreement –feel more confident

After learning about what is an individual voluntary agreement, you will start to feel more confident that you can solve your debt situation in a reasonable manner. The simple truth is that an Individual Voluntary Agreement can provide you with a means to eliminate your debts without even needing to pay off the entire debt. This is because in an Individual Voluntary Agreement, the debtor and the creditor, after negotiating their way, can agree to certain terms whereby the former will make monthly payments for a certain period of time (not more than five years) after which the unpaid debt will be written off.

Learn how to resolve your debts

Learning about what is an individual voluntary agreement can prove to be very useful. This is because you will understand that this agreement will help you in resolving your debts in the most reasonable manner. However, one of the things that you will need to worry about in regard to understanding what is an individual voluntary agreement, is that no Individual Voluntary Agreement is going to be the same.

Unique situations

This is because each person has a unique situation and their circumstances will differ. In order to cater to a person's special needs, the Individual Voluntary Agreement has to be tailored to suit special situations. Therefore, it is highly unlikely that such an agreement will work for two different people.

Insolvency Practitioner

When learning about what is an individual voluntary agreement, you will also need to understand that the agreement has to be drawn by an Insolvency Practitioner. Such an individual is an expert that has the qualifications to look at the debtor's financial condition and will then devise the perfect plan to suit the debtor's particular circumstances.

Another interesting fact that you will learn about when checking out what is an individual voluntary agreement is that once the agreement has been drawn up, the creditor and the debtor are legally bound to adhere to the terms of the agreement. What's more, once the agreement has been signed, the creditor is then barred by law from contacting the debtor for payments. If they try and contact the debtor, they will be breaching the terms of the agreement and they can be punished quite severely for doing so.

You must also understand how you can qualify for such an agreement. So, when learning what an individual voluntary agreement is, you must check the regulations regarding how people can qualify for the agreement. Typically, you need to be a citizen of the UK and you must have certain amount of debt. In addition, you must have at least 3 creditors and you must also be able to prove that you have sufficient income with which to make your repayments.

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