What is an IVA?
by admin on 10/12/09 at 1:40 pm
IVA stands for Individual Voluntary Agreement. This agreement can take place when someone has creditors that they owe and they wish to arrange a payment agreement with their creditors. This type of agreement will include the full amount of debts with creditors and it will have a time frame in which the debts will be considered free and clear. For example, one may set up their agreement with their creditors, via a third party (the one who helps the consumer prepare the agreement) so that their debts will be paid off in 3 years. This agreement is not to be confused with credit counseling or other debt relief programs like that.
There are licensed professionals who arrange these agreements with consumers. These professionals will ask for a person’s total debt amount, their financial information regarding income and other things like that, and they will help the consumer figure out their payment plan. When the consumer is in total agreement of what they will pay back, when the payments will be made, and for how long the payments will be made, they will then sign an individual voluntary agreement. An Interim Order is the next step.
An Interim Order is a court proceeding. It is best described as a court hearing or a court judgment, but it is a temporary one. This proceeding will not be finalized until the consumer and the creditors have appeared at court proceeding and have agreed, before the Judge, about the agreement that has been made, otherwise known as the individual voluntary agreement.
You can read more about IVA’s on DebtAlleviate.co.uk.
