Individual Voluntary Arrangement - IVA
An Individual Voluntary Arrangement (IVA) is a formal agreement
between a person and their creditors. If a person cannot make their
repayments in full but are able to pay something each month then
an IVA proposal can be established. This proposal sets out exactly
what the person will pay their creditors each month. This is normally
over a period of five to six years.
IVAs can only be drafted by an Insolvency Practitioner (IP). What
an IP will do is go over all your personal finances and calculate
exactly how much a person can realistically pay each month. The
period over which the IVA proposal covers, can be reduced if a lump
sum can be raised through the sale of property of other assets.
Once the initial draft has been done, an Interim Order can be applied
for. Whilst the Interim Order is in place a person's creditors cannot
take action against them without first approaching the Court. A
hearing date will then be scheduled. During this session, creditors
will be asked to vote on whether they agree with the IVA proposal.
If over 75% of them agree the document will then become legally
binding. Once a person has made all the payments set out in the
IVA over the five or six year period, it is considered that all
liabilities have been satisfied.
If a person is in debt it can be a fine line between what is most
suitable for them between a Debt Management Plan and an IVA. We
are licensed debt adjusters and registered with the Office of Fair
Trading. We are therefore qualified to give free, confidential credit
counselling. If possible, it is preferable to put a person on a
Debt Management Plan as an IVA is a lot more serious and will remain
on their credit record. Due to the nature of our work we have close
links with Insolvency Practitioners. Please click below and use
the form to send us your details. We can then advise you of the
best method to tackle your debt problems. We look forward to being
of assistance to you.
Whatever debt
problems you have, we can help. Click here
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