Should Shopaholics Outthink Of An Iva To Solve Their Debt Problems?
The whole world is passing through the bad economy phase
. Every country is going through the problems of credit crunch. More and more people are getting bankrupt because they are unable to pay off the loans that they have taken up. Even if they do not want to, people are forced to do so.
There are some procedures involved in IVA. First of all, an application form along with copies of recent bank statements is submitted. A consultant is there to help in the application. If all the standard criteria are accepted then application is accepted for IVA programme. Panel members then act as legal representatives by contacting all the creditors. An IVA proposal is then drafted based on the information provided. An "interim order" is granted as a legal protection from creditors. Once this interim order is granted, creditors cannot issue bankruptcy proceedings. A Nominees Report is prepared by a panel member, who reveals whether IVA is an acceptable offer or not. After that, a meeting of creditors is scheduled. Usually, practitioners on the panel do not charge any upfront fees for the proposal. When IVA is approved, you can legally keep up your monthly IVA payments.
Their bills start piling up with a lot of interest on them. Then, the next mistake they make after the unnecessary spending is to delay their payments of the bills or skip them totally. This leads to extra interests on the actual amount. Altogether, it creates a huge pile of debts, which leaves them paralysed, and they are unable to think of any way out of it.
An IVA is a legal contract, which facilitates a person to cut the debts at an affordable level and then clear them over a fixed period. There is even an option of taking out a fresh mortgage while in an IVA. Another benefit is that it is totally private; you, the advisors and your creditors are involved in it, nobody else knows about it.
Shopaholics can easily make one single monthly payment, which is in accordance with their budgets. After 3-5 years, when remaining debt is cleared, you are totally debt free. Therefore, IVA can help in write off debt up to 75%. IVA is a great opportunity for shopaholics as they can choose the payment option that can be easily managed by them.
After entering into an IVA, you can easily cash your mortgages through endowment policy and pay the proceeds. Therefore, if there is a lot of burden of debts, you do not have to worry because you can retain your property.
If you fulfil these requirements then you are eligible to apply for an IVA. They should seek help of the insolvency practitioner to apply for an IVA. However, the most important thing for a shopaholic is that they must change their habit of spending. If they do not learn to spend wisely, they will end up in debts again and again.
Therefore, for the shopaholics, it is more important to adjust their attitude, because if they do not, they will keep on repeating the same thing. So, spend wisely!
by: Edwood Woodward.
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