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How to Make Long Island Tea

Long island tea is a classic drink that you can get in almost any bar, a type of cocktail so old that nobody’s completely sure who even first created it. Despite its name, it’s not actually made using tea: in fact, it’s not even made in a similar way to tea…

5 After-School Snack Ideas for Busy Parents

As a busy parent, finding it easy to make snacks for the kids is essential. After a long day, the last thing you want to do is bake cookies. When the kids get home from school, they're usually hungry and exhausted. You need healthy snack options you can have ready for them. When they run through the door, kicking off their shoes and dropping their school bags on the…

Flowering Plants You Can Plant at Home

Are you one of those people that admires your neighbours’ gardens when they are in full bloom with envy? Do you sometimes feel like you would like to give gardening a try but feel like you do not possess the know-how to make a success of your own garden?…


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Benefits of an Individual Voluntary Agreement

Individual Voluntary Agreement or in short IVA is a financial alternative for people who want to avoid extreme situations like bankruptcy. IVA was established by British Government Insolvency Act in 1986. This agreement is legal binding and paves the way for a repayment proposal agreed mutually by debtors and creditors. This agreement generally considers the debts of unsecured lenders. It is a flexible agreement and the repayment amount depends upon factors like personal circumstances of the borrower, capital, income and third party payments to be made.

How IVA is proposed?

A borrower can apply for IVA in both pre-bankruptcy and post-bankruptcy period. When the borrower is applying in post-bankruptcy, he/she has to apply to the Court for an annulment of the bankruptcy order. If accepted, the court can nominate an Official Receiver to be the supervisor of the arrangement. During the pre-bankruptcy period, the borrower can take help of an insolvency practitioner to arrange a meeting of all unsecured lenders. When 75% of them agree, the agreement comes into force.

IVA benefits for UK borrowers

IVA as an repayment alternative is growing on popularity chart. There are several advantages of applying for IVA. They are

1. As IVA is a private agreement between a debtor and creditors, your case is not publicized. It is immensely beneficial for borrowers whose job involves a greater degree of public responsibility.
2. The maximum time length of IVA is 5 years. After this period you are declared free from debt even if you have not repaid the entire amount.
3. The agreement does not statutorily restrict a debtor from obtaining credit. It means while under the agreement, you can raise fresh credit.
4. IVA is a better option to improve credit scores compared to bankruptcy.
5. Your secured assets are risk free during this agreement. The lenders can not repossess your home when the agreement is in force.
6. IVA is usually less expensive compared to bankruptcy
7. In case of IVA, all unsecured creditors are bound by it once it has been agreed: even if they did not agree to the IVA at the meeting of creditors.

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