Great Guidelines to Complete an IVA
Posted on: 19 July 2018 by James Joni
Individual Voluntary Agreement
Your personal conduct can affect how you go through an Individual Voluntary Agreement. Websites often do not consider the human aspect of the IVA and how it can affect your success or failure in dealing with personal debt. A list of some guidelines is provided to make your IVA process less difficult.
1. Be realistic.
Electing to use an IVA as a debt solution requires the individual to face the reality of their financial situation. You have to be realistic in terms of how far in debt you are in order to even qualify for this type of agreement. If you are not realistic, you may wait so long that the debts can only be handled by harsher debt solutions such as bankruptcy.
2. Be honest.
Honesty is paramount in this process. You have to be honest with your insolvency practitioner in terms of what your assets are, your income or any other relevant facts. Lack of honesty can cause an IP to face legal issues or can affect your IVA if you are found to be hiding some income or funds that could be used to pay your debts.
3. Be patient.
This is a long term debt solution and requires patience in order to complete the five year period without any more issues. You must patiently deal with your creditors for these years without causing problems in order to receive a certificate of completion. Five years can be a long time to deal with the stringent requirements of the IVA. Visit IVA Wizard for further information.
4. Be responsible.
You have to be much more responsible with your funds during this period. You must be able to balance your income and your monthly payments so that you have enough money for living costs. Therefore, you must develop a financially responsible attitude to ensure that you do not incur any new debts. You must also be responsible enough to avoid reckless spending when there is an opportunity to pay off a large percentage of your debt.
5. Be consistent.
This is a critical personal characteristic to have during the IVA process. You have to be consistent in your payments so that there is no reason for the IVA to fail or to cause your lenders to seek legal redress in a court. Your consistency is also a testament to your renewed enthusiasm for financial stability.
You must keep communicating with your insolvency practitioner so as to know the status of the IVA. Take initiative and inform your practitioner if any changes occur in your personal circumstances that could change the IVA. Communicating with this individual also means that you are communicating with your creditors and not just ignoring the debt.
7. Work hard.
You should strive to work as hard as possible during the five years. Since you may not be able to get external funding, work doubly hard to survive and pay off the debts in a shorter period.