Know Your Rights to Your Debt; Make Use of IVA


The steel industry in the United States of America has suffered from the recession. This resulted not only in the closure of some steel companies but also in the massive layoffs. Because of this, some families that relied on the industry have incurred debts. They have been harassed by their creditors but at the moment, they have no way to pay it back. However, some of them see hope for the revival of the steel industry. If you are among these people, you can now seek to have an IVA agreement with your creditor. This refers to Individual Voluntary Agreement that the debtor makes with his creditor. Through this agreement, the debtor promises to pay his debt at a future date under the terms that he can afford.


How Can A Debtor Be Qualified to the IVA?

With the steel industry gaining momentum once again, there is great hope that those employees who were laid off will be hired again. The fact that they will be earning an income soon will allow them to promise to pay their debt after a certain period of time. Once their creditor agrees and the papers are signed, their debt is written off and the creditors cannot harass them again. They have to wait for the promised schedule of payment to collect what was owed from them.

If you are one of those workers in the steel companies who have incurred debts, you will be qualified for the IVA provided that your total debt is more than £10,000 and you have incurred it from two or more creditors.

However, student loans, arrears on child support, and magistrate court bills cannot be included when applying for an Individual Voluntary Agreement.

Is Individual Voluntary Agreement Part of Your Rights to Your Debt?

Yes, this is one of your rights to your debt. Getting into this form of agreement is one of your rights to your debt. You have the right to arrange with your creditors a specific date for you to pay them back at the rate that you can afford. So, if you think that you can be rehired in your company three months later, you can indicate in the agreement that you will start paying on that date. If you think that you cannot afford to pay in a lump sum, then, you can ask your creditors to let you pay on an installment basis.

The Federal Trade Commission (FTC) is the national consumer protection agency. The agency clearly states that collectors should not use unscrupulous methods of collecting payments for debts. They cannot call you before 8 o’clock in the morning and after 9 o’clock in the evening to collect. They cannot call you in your workplace if you have informed them that your employer does not allow you to entertain calls or collectors. They are not allowed to talk to a third party about your debt, and they cannot harass or abuse you.

You have the right to have an Individual Voluntary Agreement with them and after both of you have signed it, they cannot personally force you to pay. By knowing your rights, you will have the peace of mind while working in order to earn money to pay your debts.