How do I apply for an IVA?
If you wish to choose the alternative of IVA to redeem yourself from the financial problems you are facing, you need to know how to apply for an IVA. It can free you from the burden of debt in about five years.
Usually with the aide of a debt advisor, a debtor sends the proposal for application of an IVA depending on his current financial condition to a Licensed Insolvency Practitioner. Then a formal proposal is drafted by the IP taken into consideration the history of debt and explaining the current plight as well as the willingness to reach an agreement. This is then signed by the debtor and sent to the creditors who reply within a span of two weeks. The creditors may ask for amendments in the proposal which will be intimated to the debtor by the IP. Thereafter, a meeting is held between the creditors who either favor or reject the proposal. If a 75% vote count is in favor, the proposal is implemented. The court and the creditors are the only two parties to whom the proposal is disclosed.
It takes about 4-6 weeks to apply and finally settle an IVA program. During this period other formal considerations like filing facts, drafting proposals, collection of evidence and sending proposals to the creditors are done. Thus through a monthly payment, debtors can relieve themselves off their debts. This monthly payment is administered by the IP and presides over the meeting, if any, between the debtor and the creditor. Otherwise, during the five years the two parties are not permitted to see each other. All transactions are to be done through the IP only. If the debtor respects the monthly payments to be made he can relieve himself off in five years and the remaining payment is written off.
An IVA is a serious financial agreement, so be sure to check the credentials of your IP before getting involved!
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