An Individual Voluntary Arrangement is a legally binding arrangement between you and your creditors, which allows you to pay less than what you actually owe to your debtors. It can be seen as an alternative to bankruptcy, but you can opt for an IVA even if you are already bankrupt.Download for your university Exam : UM UPI
The term Individual Voluntary Arrangement was first established under the Insolvency Act of 1986. The process involves the hiring of a Licensed Insolvency Practitioner who helps you reach a compromise with your creditors about the amount you will be paying them in the future. After careful analysis, a proposal is presented to all the creditors specifying exactly what you can afford to pay monthly, and the time period. The amount put forward to the debtors is based on your financial position and ability to make those payments regularly. Although there are many IVA specialists practicing in the UK, it is important to hire a reliable person who you can trust.
Apart from preventing bankruptcy for creditors, an IVA is a good option for the creditors as well because it usually ensures them higher payments than other alternatives. It is important to offer the creditors a better deal than they would receive from bankruptcy, otherwise they will reject the offer. In order for the agreement to be finalised, 75 percent of the creditors must agree to it.
An IVA can be a perfect debt solution for you, because it offers many advantages. It reduces your debt to a level that you can afford to repay, so you can continue with your life without the threat of legal action. It also allows you to be debt free in around three to five years, by paying a fixed monthly installment.
Your creditors cannot increase this amount and neither can they increase the interest rate on your debt. An IVA helps you maintain your privacy and integrity while you pay your debt, unlike a bankruptcy filing, which has to be announced and disclosed. Perhaps the biggest advantage is that unlike a bankruptcy case, an IVA does not give the debtors control of your property or valuables. You do not have to give up ownership of your home or fear legal action.
Thus for those of us in financial trouble, an IVA offers a good alternative to bankruptcy. When the term of the IVA is completed, the remaining debt is written off and the debtor is debt free. However, if you default on your payments, then legal action can be taken against you.
Before opting for an IVA, ensure that the plan you have selected suits your financial position, so that you can easily make the payments. It is a big commitment, which should be entered into carefully.
Self-advocacy steps
Successful students understand themselves well. They know their strengths and they have developed ways to minimize the effects of their weaknesses. They also have a clear idea of their short-range and long-term goals, and are committed to meeting these goals.
These self-advocacy steps will help students obtain the supports they need, not only from others but from themselves as well!
Student Supports
- Have a clear plan to graduate in a certain time frame and set your schedule to realistically accomplish this plan
- Logically plan the kind of support you need to give to yourself!
- Meet with your teachers regularly
- Don't wait until things get bad to see you need a different approach; if it isn't working-try another approach
- Pause, think and reflect before diving in-avoid the "Opps! and regret"
- Remember: resistance and avoidance stunt maturity; meet challenges had on and don't be afraid to make mistakes
- Evaluate and think through setbacks-they are the teachers of success!
- Everything goes better when you get enough sleep and eat more healthy foods
- Plan ahead on how to manage stress, loneliness, and change
- Seek balance in all things-academics, relationships, pursuit of interests, career development, spiritual growth
- Seek out stabilizing forces (people, classes, work experiences, living arrangements, etc.)
- As soon as you identify a problem surfacing in a class, figure out how to remove it from your path
- Keep your long-term, personal goals front and center in your mind, guiding you through the tough times!
- Reward yourself for meeting your deadlines and achieving your goals!
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