Voluntary Credit Agreement

If the IVA is approved, the receiver designated as the supervisor in the approved IVA becomes the supervisor of the IVA. This involves reporting annually to creditors, the debtor and the court. This includes verifying that the debtor complies with the terms of the transaction, granting creditors` claims, paying creditors and ensuring that the transaction progresses in accordance with the terms of the proposal. The debtor must respond to all appropriate requests from the supervisory authority, which may include the regular provision of bank statements, accounts, pay slips, etc. 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. This means that it is approved by the court and your creditors must comply with it. In addition, creditors will increase the debt from the date of the meeting of creditors until the date of failure (currently 8% per year) with interest and charges, which will increase the debt. If your IVA ages, your score should improve gradually. This is due to the fact that lenders are usually more attentive to your most recent credit history. Your IVA is better once it`s marked “locked.” There are two separate fees to pay in an IVA. Both fees are paid as part of the arrangement and are included in the monthly contributions to the IVA. Typically, these fees do not affect the total amount to be paid, but rather reduce the final dividend that each creditor expects to receive from the IVA.

As a result, a receiver must agree on his fees with creditors with voting rights before accepting an IVA. However, their creditors must agree and often they will not. You can include most types of debt in your IVA proposal, but remember that your creditors may object to them. See the next section The IVA procedure. In this fact sheet, you will discover how to use them with an individual voluntary agreement (IVA) to meet your debts. Be careful if you have a rental agreement that you want to include in your IVA. Check your agreement carefully to see if there is a clause allowing the creditor to terminate the contract when you take an IVA and contact us for notice. There may be alternative solutions for you to manage your debts.

For example, you may want to consider a debt management plan. This is an informal agreement in which you pay your excess income to a debt management company. The debt management company then negotiates reduced repayments with your creditors. If an IVA is deemed appropriate, the receiver becomes appointed. . . .