The individual voluntary arrangement is a legal and contractual agreement made between the creditors and the IVA agent with the debtor also in the picture. It is a private agreement between the debtor and creditor which was made available by the promulgation of the Insolvency Act 1986. It constitutes an official repayment proposal presented by an Insolvency practitioner to a creditor on behalf of the debtor. The government of a nation always give license to people who want to practice as an Insolvency agent. Without this license, such a person is declared as an illegal or unqualified practitioner. Furthermore, clients who are willing to use IVA often search for best IVA companies in order to access better services.
One of the advantages of the IVA over other debt settlement means or arrangement is the length of time given to the debtor to offset the debt. In a formal arrangement, a debtor can repay over a period of five years depending on his or her expected income as it were. There is also provision under the law for anyone undergoing an IVA to engage in trading activities. Normally, if bankruptcy was chosen as a means of debt management, such a bankrupt cannot engage in trade as the partnership is dissolved upon the declaration. Also when the best IVA company is used, a debtor has control over his home. Click here to know more about #iva scotland.
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