How Will an IVA Affect Me In the Future?

Editorial Note: These blog posts represent the opinion of DoNotPay’s Writers, but each person’s situation and circumstances vary greatly. As a result, you should make sure to do your own independent research. Because everyone is unique, our self-help tools are never guaranteed to help with any specific situation. DoNotPay is not a law firm and is not licensed to practice law. DoNotPay provides a platform for legal information and self-help.

How Will an IVA Affect Me In the Future?

If you have been overwhelmed with debt, you may be looking at an Individual Voluntary Arrangement (IVA). An IVA is a legally binding contract between an individual and their creditors whereby the individual pays their debts over a specified period. An insolvency practitioner must set up the IVA. If you have reached this point, you may be asking, '' DoNotPay is here to help you navigate the situation so that you can determine the most appropriate course of action.

What Happens If I Ignore My Debt?

Neglecting your debt is never a good practice. In truth, this will cause you more problems in the long run. If you ignore your creditors or debt collectors acting on their behalf, you could potentially face a variety of issues, including:

  1. They will continue to call, write or show up at your house.
  2. They may resort to illegally harassing you.
  3. They can report you to credit bureaus.
  4. They could sue you.
  5. You could have possessions or wages seized to pay the debt if a judgment is passed against you.

How Will Does IVA Affect My Job?

In most circumstances, your job is not affected by an IVA. However, certain professions, such as accountants or solicitors, may not be allowed to practice any longer or may only be allowed to practice under certain conditions. Therefore, you should always check your contract if you are concerned about how an IVA will affect your employment.

What About My Assets?

If you have assets, such as a vehicle, land or home, you are required by law to inform your insolvency practitioner. They will help you determine if you should sell anything to pay some of your debt or if you can keep them.

Future Assets and IncomeYour IVA could affect future assets or income. You should always discuss this with your insolvency practitioner. For instance, if you sell your home, you may have to pay any money you make into the IVA. If you receive an increase in income, you need to declare it while you have an IVA.
Windfall ClausesA 'windfall' is when you unexpectedly receive money. This could be an inheritance, a large bonus at work or winning the lottery. Your IVA will likely include a windfall clause, and you will have to pay windfall money into the IVA. If you believe it is likely that you will receive a windfall during the IVA, you should consider this first.

How to Get Debt Help With DoNotPay

An can affect you in many ways. Before you start the process, consider how DoNotPay can help first. If you are struggling to pay your bills, have accounts in collections or are being harassed by debt collection agencies, you may be overwhelmed. At DoNotPay, we understand it can be confusing if you get a letter about a debt you didn't know existed. We know it can be irritating to constantly receive phone calls from a debt collector at all hours of the day when you are doing your best to get caught up. If you need help figuring out if debt collectors are truly harassing you or need help requesting they comply with the law, DoNotPay is here with a solution that could help you get control of the situation.

We will guide you through a short series of questions to help determine what course of action you should take. It is entirely possible you are being contacted about a debt that isn't yours or that they are violating the law. DoNotPay can file a demand letter on your behalf or even report them to the appropriate governing bodies.

We can help you with a variety of companies and related debt concerns:

If you need debt help but don't know where to start, DoNotPay has you covered in 3 simple steps:

  1. Search “debt collection” on DoNotPay.
  2. Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
  3. Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.

And that's it! Once you choose the course of action you want to take, DoNotPay will handle the rest. We'll deliver your request directly to the debt collectors via first-class mail or file your complaint automatically with the relevant trade association or ombudsman.

More Ways DoNotPay Helps

DoNotPay not only provides debt help, but we are also able to offer solutions to a variety of other problems and concerns:

DoNotPay is here with solutions that will save you time, stress, and money!

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