Understanding Your Rights During an IVA Process
When facing financial challenges, an Individual Voluntary Arrangement (IVA) offers a structured solution for those struggling with debt. It allows you to make manageable repayments to creditors, helping to avoid bankruptcy and start fresh. However, it’s crucial to understand your rights throughout the IVA process to ensure you’re treated fairly and to maximize the benefits of this financial relief option. In this blog, we’ll break down the essential rights you have when undergoing an IVA and how you can safeguard your financial future.
Your Right to Be Informed
Once you decide to apply for an IVA, you are entitled to receive clear, understandable information about the entire process. This includes the costs, terms, and conditions of your IVA. Your IVA provider must explain your rights, including the options available to you and any potential consequences. It’s important to ensure that you fully understand how the arrangement will affect your financial situation. You have the right to ask questions and request further clarification at any stage of the process.
The Right to Fair Treatment from Creditors
Creditors are bound by the terms of the IVA once it has been approved. This means they cannot pursue further action against you for the duration of the agreement. Your IVA provider will mediate between you and your creditors, and they have the duty to ensure that creditors adhere to the arrangement. You are legally protected from harassment or additional demands from your creditors, and they are required to stop any action to recover the debt during the IVA process.
Your Right to Propose an IVA
The decision to enter an IVA is entirely yours. If you are struggling with debt, you have the right to propose an IVA as a viable solution, with the support of a qualified insolvency practitioner. The IVA process requires your full consent, and once proposed, your creditors will vote on whether to accept the offer. A majority vote (75% of the debt by value) is needed for the IVA to be approved. You have the right to explore all your options, including bankruptcy, before making a final decision.
The Right to Protection from Bankruptcy
One of the most significant advantages of an IVA is that it can prevent you from having to declare bankruptcy. If you successfully enter an IVA, your creditors will be unable to petition for your bankruptcy during the agreement’s term. In the event that you are at risk of bankruptcy, an IVA could be a preferable alternative, allowing you to avoid the severe financial and legal consequences of a bankruptcy declaration.
The Right to Review and Modify Your IVA
During the course of the IVA, if your circumstances change, you have the right to request a review or modification of the agreement. For instance, if your income decreases or increases, you can work with your insolvency practitioner to adjust your repayment schedule. Your IVA provider is obligated to consider your new financial situation and find a reasonable way forward.
Conclusion
Understanding your rights during the IVA process is essential to ensure that the agreement works in your favor and offers the best possible solution for managing your debt. By familiarizing yourself with your rights, you can enter the IVA process with confidence and avoid the pitfalls of bankruptcy. If you’re facing financial difficulties, seeking professional advice from a trusted IVA provider is the first step toward taking control of your financial future.
For more information on how an IVA can help you manage your debt and avoid bankruptcy, visit https://applyforiva.co.uk/.
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