How Does IVA Work?
Once you find that IVA is right option for you then your creditors vote is quite necessary to proceed further. You will be qualified for IVA only if your creditors agree on IVA terms and conditions for you. It is a legal binding between creditor and debtor about the repayment of loans. As debtor, you will need to make your payments as long as IVA period runs. Making regular payments is quite necessary in this context. You will need to pay as much amount as possible every month to clear your debts. However, when IVA process ends then remaining debts will be written off.
Your financial situation will be reviewed annually during IVA process. If there is any improvement in your financial status or increase in your income then you will need to share a major part of it for payments. IP will works as supervisor during the whole process. He will be responsible to monitor progress of the process and also ensures that terms and conditions of process have been followed consequently. You will pay agreed payment to IP and further he will ensure that the amount has been distributed among creditors eventually.
Debtor should make the payment on regular basis. In case of failure to meet with the payment obligations, IVA process will be considered as fail. Consumer will need to pay the amount with previous repayment terms without any considerations.