Do you hate being in debt?
If so, you’re not alone? After all, the experience of being in major debt can seriously impact your quality of life. That’s because debit often leads to credit problems, which will reduce your purchasing power in the future.
The key to getting control of your financial well-being is to hire the best family law lawyer to negotiate with creditors. Fortunately, this article can help. Here we take a look at how an individual voluntary arrangement can simplify your life and why you need a good family law specialist to handle the process. Keep reading to learn more.
What Is an IVA?
Let’s start by discussing the basics. An Individual Voluntary Agreement is a legal agreement that is designed to help a debtor pay off common debts.
Be sure to check out this guide to financial consent order.
What Debts Can You Pay Off With an IVA?
Believe it or not, there is a wide variety of different types of debts you can pay off with an Individual Voluntary Agreement. They include personal loans, mortgage shortfalls, credit card debt, and overdrafts, just to name a few.
It’s important to understand that you can also use an IVA to pay off income tax debt, which can help keep you out of serious legal jeopardy.
Can You Pay Off All Types of Debts With an IVA?
The short answer to this question is “NO”.
More specially, there are specific types of debt that don’t qualify for Individual Voluntary Agreements. These types of debts include student loans, unpaid child support, court fines, or auto loan debt.
What About Home Mortgage Debt?
You also might be curious about paying off your mortgage debt or rent arrears with an Individual Voluntary Arrangement. But is this possible?
Here’s the thing to understand: In order to pay off your mortgage or rent debt, or any other type of secured loan using your property as collateral, your creditors must agree to allow this debt to be included in your IVA.
Keep in mind that in many cases, creditors will refuse this type of arrangement.
Understanding the IVA Process
So how does an IVA work?
The IVA agreement freezes your debts so that you can’t pay them off over the agreed period of time. Then any remaining money will be written off.
The key to qualifying for an IVA is to show that you have enough income to make the payments.
The best strategy is to hire a family law lawyer to help you work out all the details and apply for an IVA.
The Importance of Hiring the Best Family Law Lawyer
It’s no secret that maintaining good credit is an important part of creating financial stability. But that’s not easy when you have tons of debt. Fortunately, this guide to the importance of hiring the best family law lawyer will help you make the best of a challenging situation.
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