What is an IVA ?
An IVA is an Individual Voluntary Arrangement which is designed to free you
of all your debt after five years. It is a formal agreement where you agree to
make a reduced payment to your creditors over a set period of time.
An IVA is an alternative to bankruptcy. It is set up by an Insolvency
Practitioner who is responsible for liaising with your creditors and ensuring
that you make all of the agreed payments.
Get an
IVA quotation
What are the benefits of an IVA?
By entering into an IVA, you will benefit from the following:
 Ø The interest and charges on your debts will
be frozen
Ø You will be debt free after five years.
Ø You will no longer receive calls and letters directly
from your creditors as they now have to contact your Insolvency Practitioner
Ø Your
credit rating is not as seriously affected as in bankruptcy
Ø You will not have
the same restrictions on you as you would if you were declared bankrupt - for
example,
you can continue to use your bank account without the need to declare your IVA.
Ø If you are self employed, you can continue to trade
Ø Your employment will not be affected, unless
you choose to make your employer aware of your IVA
However, you may experience the following disadvantages:
Ø If you do not keep to the terms of your IVA then the Insolvency
Practitioner or your creditors can make you bankrupt
Ø Your circumstances may
have changed during the course of your IVA and it may be a struggle for you to
afford the monthly payments
Ø There is a clause in the majority of IVA
agreements which states that you will get your house valued after a set number
of years with a view to passing the equity contained in your home to your
creditors. This is called the Equity Release clause, and it prevents you from
selling your home.
Get an
IVA quotation
How does
an IVA work ?
An IVA is a legally binding arrangement with your creditors which allows
you to repay your debts in affordable monthly payments over a fixed period
of time, usually five years.
Your IVA proposals are put forward to creditors in a document called
Proposals. The proposals are lodged into Court and your creditors also
receive a copy. If your assets are at risk because of action taken by
creditors, we can apply to court for an Interim Order, which means that
creditors cannot commence or continue with any action against you and your
assets unless the Court permits them to do so.
A meeting of your creditors is held and creditors are able to vote on
whether to accept, alter or reject your proposals. As long as your proposals
demonstrate a genuine desire to repay as much of your debt as you can
afford, it is likely that creditors will accept your IVA. It is our role to
guide you on what creditors will find acceptable.
Once your IVA is approved all interest and charges on your unsecured debt
is frozen. Also due to the fact that an IVA allows you to repay a proportion
of your debt, then as long as you keep to the agreed terms, the remaining
balance of your debt will be written off.
The main benefits of this are the fact that creditors are not able to
'change their minds' regarding the terms of the IVA and they are also bound
to freeze all interest and other costs associated with the credit facility.
Other benefits are the fact that creditors are not allowed to make
contact with the debtor throughout the duration of the IVA term and for many
individuals this serves to remove a great deal of stress and pressure as
they may well have been dealing with creditor collection calls and
correspondence for a period of time before the IVA had been out in place.
Return to home page Get an
IVA quotation
|
IVA
- INDIVIDUAL VOLUNTARY ARRANGEMENT
Whether
you're looking for a 
