Voluntary Agreement Debts

The advisor should inform the debtor of all available solutions, including priority debt treatment first, remortgiving, debt consolidation into a loan, debt management, bankruptcy, debt relief and IVA. The advisor must consider all the debtor`s circumstances, what he owns, what he owes and his income and expenses to recommend the best solution. The advisor may charge a fee for debt counseling, but most IVA providers offer advice at no anticipated fees. Non-profit debtor advisory agencies include Citizens Advice Bureau, StepChange Debt Charity, and Christians Against Poverty, which can offer debt management measures that do not involve an IVA. An Individual Voluntary Agreement (IVA) is a formal, legally binding agreement between you and your creditors to repay your debts over a specified period of time. Debtors of an IVA and bankruptcy are publicly listed in the personal insolvency register – anyone can consult the insolvency register, but it is usually mainly used by credit reference agencies that use it to update credit files (an IVA affects your creditworthiness, but this is the same as other debt solutions) and creditors who use the insolvency register, to help them make a decision about whether to lend money to potential customers…

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