How to calculate your total debts
A person dejected from his life due to burden of debt always feels that he can never get out of this mess. But that’s not true; many people face such situations where they are unable to meet their financial obligations. If you live in England, Northern Ireland, and Wales, you can go for debt solutions that provide an acceptable time of around 5 to 6 years to arrange funds and repay them slowly. When you accept the IVA solution, creditors cannot forcefully recover outstanding payments from you. An Individual Voluntary Agreement (IVA) is an effective way to start fresh, pay off your debts and get protection from creditors.
Firstly, you need to know about your eligibility to qualify for an IVA. Secondly, you should also be aware about what is the process to repay the debt amount. Thirdly, you need to take a decision that whether you want to go for it or not after reading the terms and conditions. Last but not the least, if not IVA’s, what are the other alternatives.
Let’s discuss your financial situation-
You may think of IVA if you are struggling with unsecured loans such as personal loan or credit card bills. You are facing the problems of insufficient funds in your bank account or cash in hand to pay off your current payments. This would have resulted in accumulating interest payments penalties, warning letters that are increasing the burden of debt. Hence, it is advisable to apply for debt solutions that suit your requirement. If you live in Scotland, you can apply for protected trust deeds or debt arrangement schemes and seek for debt advice Scotland.
How to calculate your debts?
An Insolvency practitioner would assess your financial situation. He would calculate your debts with the help of an IVA calculator and contact your creditors to propose the IVA for approval. A meeting is arranged to seek the approval of the creditors, if around 75 % creditors agree to IVA, the contract of IVA would be legally binding on you and the creditors. When the agreement becomes legally binding, the charges and interest are frozen and you get complete protection from the creditors. Your credit report includes the IVA and when your agreement is completed, it reflects in your credit rating for six years.