Full and Final Settlements – Know More about It
Those who have recurring debt problems, now have the option of proposing an IVA, or Individual Voluntary Arrangement to their creditors as a means of clearing their debts whilst avoiding Bankruptcy.
An IVA generally lasts for 5 years, over which time; monthly repayments can be made to the creditors through an insolvency practitioner. However, at a later stage when your finances are better it is possible to propose an IVA that consists of just one payment.
This IVA is referred to as a 'Full and Final Settlement' or 'Lump Sum IVA'.
We can also provide full and final settlements help and advice to you. Only in some cases, the 'Lump Sum' IVA can be applicable. Not all potential IVA cases will be suitable for this. One of the criterions would be that the debtor must qualify for an IVA under the normal criteria of having over £15,000 in unsecured debts which are owed to a minimum four creditors.
Secondly, the debtor must also have very little, if any, disposable income with which to make their monthly contributions. Thirdly, the debtor should be able to access enough releasable equity from a property they own, or know a third party that is prepared to introduce a sufficiently high lump sum and act as their benefactor.
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