As a creditor you enjoy certain rights when it comes to IVA Debt repayment. They are ensured by the standard conditions in the protocol Annexure IV of the Insolvency act in effect since 2014 January. The same act makes it mandatory for you to conform to certain responsibilities towards your creditors. If you are able to balance them, your IVA Debt repayment can be managed without getting into any sort of legal and financial hassles. For this you will obviously require the help of your IVA Debt solicitor who acts as the legal negotiator between you and the creditors. You need to make sure that you submit all the required documents and details to him. You also need to avoid making any contacts or communications with your creditors directly without the prior knowledge of your solicitor.
Your Legal Rights as Creditor in IVA Debt
- You will be free from the obligations of paying interests and overheads for the outstanding debts from the date of agreement. The freezing of interests will benefit you in making a considerable saving. Once the agreement is in effect your creditors cannot stake claims under any circumstances.
- You have the option to decide on the minimum and maximum monthly installments you can afford, in consultations with your IVA Debt solicitor. But you must be careful to declare this as you may not be able to change this frequently.
- You have the right to claim write offs between 30% and 50% in your outstanding loan principal sum, depending on the terms negotiated between your creditors and IVA Debt solicitor. In some cases it might be possible to exceed this limit also, but it is not guaranteed.
- You have a right to secure your minimum life and family support funds. You will be able to meet any of the emergency medical and other unavoidable expenses. You can discuss with your IVA Debt solicitor and get funds allocated.
- You reserve the rights to continue with your job /trade. You also have the legal rights to expand the scope of your income without having to bother about having to pay more to your creditors. The only requirement is that you need to keep your IVA Debt solicitor informed about all sources of extra income on time. This will help him in finding the path for faster repayment of your agreed principal loan sum.
Your Legal Responsibilities as Creditor in IVA Debt
- You need to conform to the installments of repayment sum regardless of the situations you may face during the repayment period.
- You need your IVA Debt solicitor’s written consent before selling or disposing any of the assets that you have declared to him.
- You must not apply for any additional loans from banks or financial institutions until you have cleared the existing IVA Debt.
- If you are a salaried employee you must declare any bonus, increments or other financial benefits you get from your company when they exceed a particular value. You need to consult your IVA Debt solicitor to know about the exact percentage of this from your gross/net salary.