Individual Voluntary Arrangement - Call 01543 432076
YOU CAN BE DEBT FREE IN FIVE YEARS*
IVA’s are a Government backed initiative to help consumers deal with their debt problems. An IVA in the UK is a formal agreement between you and the county court to pay off debts over a determined period - usually five years. Typical payments usually range from £250-£300. Up to 70% of the original debt may be written off at the end of the agreed term.
An IVA can only be set up by an Insolvency Practitioner (IP). The IP gathers a proposal to present to creditors highlighting how the debt will be repaid over the agreed period, which the creditors then vote to accept or dismiss. If the creditors who agree are owed 75% or more of the debt, then the remaining 25% are bound by their decision.
At the end of the agreed term, if the repayments have been made satisfactorily, the remaining debt is usually written off (this may be up to 70% of the original outstanding debt). Other options allow the customer to remortgage or raise secured finance against the equity in the property during the term of the IVA, to make an offer of ‘full and final settlement’. If accepted them the IVA will be discharged early.
An IVA is not the same as bankruptcy. In a bankruptcy all assets are held by the trustee, including your savings and insurance policies - and they are shared between creditors on a pro rata basis. With an IVA your IP can negotiate which assets are included in the agreement, which could mean the exclusion of your home, while with bankruptcy you are subject to numerous restrictions, such as not being able to borrow more than £500 without permission, until you are discharged.
Once your IVA proposal is approved you are protected from your creditors and they are bound by the contract not to contact or harrass you in any way.
IVA’s have benefits but they are not right for everyone - but they are a potentially good alternative to bankruptcy, especially if your job would be at risk by going bankrupt. As long as you keep up your repayments, your IVA will run it's course and you will be debt free. Your credit rating will be affected. However most people looking at an IVA option are already missing payments on finance so an the IVA itself will not make it worse than it currently is.
Call us to discuss IVA's and we will look at all the options for you and explain each one in depth and you can decide which is right for you.
* typical term 60 months, homeowners may be required to pay for 72 months in lieu of equity
An IVA can only be set up by an Insolvency Practitioner (IP). The IP gathers a proposal to present to creditors highlighting how the debt will be repaid over the agreed period, which the creditors then vote to accept or dismiss. If the creditors who agree are owed 75% or more of the debt, then the remaining 25% are bound by their decision.
At the end of the agreed term, if the repayments have been made satisfactorily, the remaining debt is usually written off (this may be up to 70% of the original outstanding debt). Other options allow the customer to remortgage or raise secured finance against the equity in the property during the term of the IVA, to make an offer of ‘full and final settlement’. If accepted them the IVA will be discharged early.
An IVA is not the same as bankruptcy. In a bankruptcy all assets are held by the trustee, including your savings and insurance policies - and they are shared between creditors on a pro rata basis. With an IVA your IP can negotiate which assets are included in the agreement, which could mean the exclusion of your home, while with bankruptcy you are subject to numerous restrictions, such as not being able to borrow more than £500 without permission, until you are discharged.
Once your IVA proposal is approved you are protected from your creditors and they are bound by the contract not to contact or harrass you in any way.
IVA’s have benefits but they are not right for everyone - but they are a potentially good alternative to bankruptcy, especially if your job would be at risk by going bankrupt. As long as you keep up your repayments, your IVA will run it's course and you will be debt free. Your credit rating will be affected. However most people looking at an IVA option are already missing payments on finance so an the IVA itself will not make it worse than it currently is.
Call us to discuss IVA's and we will look at all the options for you and explain each one in depth and you can decide which is right for you.
* typical term 60 months, homeowners may be required to pay for 72 months in lieu of equity
