What is an Individual Voluntary Arrangement (IVA)?
The Individual Voluntary Arrangement can be considered as an agreement that takes place formally and in a legal way with proofs that take place where one needs to communicate with their creditors. The main purpose is paying off all of the debts that were made in a specific amount of time period. There will be an insolvency practitioner who will be setting up the IVA, mainly a highly qualified lawyer or accountant who has good quality experience over such stuff.
Here, we are going to discuss how to choose such an Individual Voluntary Arrangement provider.
Why does one need an Individual Voluntary Arrangement provider?
There are some people who actually do not need the service of an IVA provider but still end up using it. So, before getting started, one needs to know some basic factors on which the necessity of the IVA will depend. These factors are mainly one’s personal circumstances, the debts they owe at that moment, the income one can make in a certain amount of time barring the expenditure and the knowledge to set up an IVA rightly.
How can one set up an Individual Voluntary Arrangement?
There is no way an Individual Voluntary Arrangement can be set up by one single person alone. The requirement for an insolvency practitioner is a must when setting up the IVA. They will be playing a vital role as in taking the main IVA proposal in one’s behalf to all the creditors in question. Since the insolvency partners are highly qualified lawyers or accountants with experience as mentioned before, they will find it easier to do such tasks.
Choosing an Individual Voluntary Arrangement provider
Basically finding an IVA provider is finding a good insolvency partner. There are various authorized centers that provide IVA providers, whether in person or online. Apart from that, there are local official receiver’s offices which provide insolvency practitioners or IVA providers as well. However, before choosing one final IVA provider, there are a few things that have to be kept in mind such as-
- The total expenditure including the costs and the fees
One can never be sure as how much the actual cost may be required when dealing in such matters. Only experience will able to tell an estimate as what should be the benchmark to consider a cost high or low. For starters, they have to learn by comparing the costs of hiring different IVA providers and find the ideal deal. One can easily contact a lot of IVA providers or insolvency practitioners and ask them about the total cost and fees that are required to set up an IVA along with the fees they charge. When such information about a lot of people is gathered, one can easily compare which one is the cheapest. But one has to also keep in mind the quality of the service received. Therefore, the best deal would be getting the best out of the money spent.
- Meeting the IVA provider
When the preliminary stage comes of setting up the IVA, one needs to have a meeting with their IVA provider to sort out the actual need for the IVA at present. Such meetings need not be face to face, they can be done through video calls or phone calls as well, but face to face meetings are still prioritized. After the meeting, one will be clear with their decision of hiring an IVA provider or not. Once the decision to go on with it is taken another meeting will be required from which the official setting up of the IVA will take place.
- Taking the help of a debt management company
The usage of a debt management company is not really required to set up an IVA. However, with the help of one, it may be easier to set up the IVA. There are various such companies who do provide such service, but most of them charge an amount as well. A good IVA provider will be able to help you find the debt management companies that provide their advices without any extra payment from your part. There will obviously be some understanding between the IVA provider and the debt management company, but you need not to be concerned with it. After all, you are getting their advices and references for free! A good insolvency practitioner or IVA provider will be able to help you find such companies and even get the best out of them. So, definitely go for such IVA providers.
A good IVA provider will let you know whether you actually need it right now or if you do need it, what are the various options available. A good IVA provider will also ensure that their clients read and understand the terms and conditions of their service completely. So, such an IVA provider must be given preference.