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IVA Applications: A Quick Guide To Composing An Effective Application
If you are considering applying for an IVA then you have probably already found that IVA applications can be a nightmare. They are complex and difficult to understand in many cases. They also need to be 100% accurate and well organised if you want your IVA applications to be accepted. |
This is one of the major pitfalls because high street banks and lenders may well turn down your application if they believe that you can offer them more.
IVA applications are only put into force if you receive the approval of at least 75% of your creditors. If less than 75% approve your IVA applications then you will not be able to hold any of those that did approve it to that. It is not legally binding in that case. However, if over 75% of your creditors approve your IVA applications, all of your creditors are legally bound to them and do have to abide by them, whether they accepted them or not.
If a company does reject your IVA applications then they can actually recommend measures that are to be taken in order for you to gain acceptance. This may be an increase in the amount you offer or a reduced time frame. However, if they do make these recommendations then you should do your best to meet them. Especially if it makes all the difference between converting your proposal into a legally binding document by taking acceptance over the 75% mark!
The tips below will enable you to make effective IVA applications first time around and save the hassle of amendments!
- Consult with a professional IVA practitioner because his or her advice will prove invaluable in your quest for that elusive debt free day
- Make your best offer and do not hold anything back in the way of your finances
- Be brutally honest about your financial situation
- Be sure to outline the bottom line and what you will have to do unless your IVA application is approved.
- Do not beat around the bush but be straight to the point and concise.
Visit www.aph.org.uk for an Individual Voluntary Arrangement or IVA Application. | 
