Debt Management IVA Online
What is a Debt Management Plan? A debt management plan (DMP) is a formal agreement setup between a debtor and a creditor that will help addresses the current terms of an outstanding debt. This normally refers to a personal finance process of individuals with a high level loans and consumer debt. Debt Management Plans will help reduce outstanding, unsecured debts. They can be negotiated to be spread over more time to help the debtor regain control of finances and manage their debt better. The plans aim is to secure a lower overall interest rate, longer repayment terms, or an overall reduction in the debt itself. What is an IVA? An individual voluntary arrangement (IVA) is a formal alternative in England and Wales for individuals wishing to avoid bankruptcy. The IVA debt management process was established by and is governed by Part VIII of the Insolvency Act 1986. It was designed to formalise a debt management repayment proposal. The IVA is presented to a debtor’s creditors via an insolvency practitioner. The IVA usually comprises of only claims of unsecured creditors, therefore leaving the rights of secured loans and creditors largely unaffected. Insolvency practitioners commonly charge initial and ongoing debt management fees that are in addition to the original debt. An IVA is a debt management contractual arrangement with creditors and can be as flexible as an individual’s own circumstances. They will therefore be based on the individuals capital, income, third party payments or a combination of these. Contact us now to get a quote on how you can benefit from an IVA debt management plan. What is the best plan for me? Everyone has varying circumstances and factors that will effect the decision. Contact us now to now for further advice on IVAs and Debt management plans.