2007-12-13 09:33:40 · 2 answers · asked by MARK H 1 in Business & Finance ➔ Personal Finance
As above, except the bit about 'anything you can't afford after 5 years ...'
What you can afford is agreed up front .. all your Creditors must agree to the repayment schedule (so they already know exactly what they are going to get). In most cases they will agree to freeze interest and penalties and even reduce the debt by a good percentage ..
However if you fail to stick to the agreed payments, you are in breach of the IVA & the "deal" will be off ... they can then take you to court for the full amount plus penalties (and even make you Bankrupt).
2007-12-17 08:01:51 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋
You contact an insolvency practitioner and discuss how much you can afford to pay each month. If you are a homeowner you can also introduce funds from a remortgage.
This is the basis of your proposal to your creditors.
The IP will negotiate the arrangement with your creditors.
You make payments into an arrangement for 5 years and anything you can't afford to repay will be written off.
2007-12-13 09:41:22 · answer #2 · answered by Johnny 7 · 0⤊ 0⤋