Following on from our first article on the most commonly asked questions about Individual Voluntary Arrangement or IVA Debt Help, here we have provided you with another selection to give you a little more information. If you are finding it increasingly difficult to keep up with your debt payments then these payment plans are definitely worth thinking about.
Who is eligible for these agreements?
Different companies can have different requirements in regards to the minimum level of debt required. As a broad rule though, if you meet this level and can meet monthly payments of around 200 then you should be eligible.
How does this affect my current credit?
You will not be allowed to use any credit or store cards throughout the durations of your agreement although you can still use pre-paid cards during this time. You can usually still take out a mortgage whilst in an agreement but you should always seek advice before doing so.
Do all of my creditors need to agree?
Under the terms of these arrangements if less than a quarter of your creditors disapprove then it does not matter as they will be bound by the majority agreement. If there are not enough of your creditors that agree then you may have to turn to bankruptcy although you can come to revised arrangements in the hope that they will then agree.
What will the agreement cost me?
When the company you go to calculate how much you can afford to pay each month they will include their own fees in this figure. This means that you will still be paying the single amount each month and will not be hit with any further bills in the future.