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About IVAs
An Individual Voluntary Arrangement is an alternative debt solution to bankruptcy, and may be suitable if you have a genuine desire to see your creditors repaid at an affordable rate over a realistic timescale.
An IVA is a formal and contractual agreement between you and your creditors, in which you disclose the full extent of your financial situation, and offer creditors a suggested repayment solution either based on the payment of monthly contributions or the realisation of assets. IVAs have to be supervised by properly qualified professionals called Licensed Insolvency Practitioners. Contributions based IVAs generally run over a five year period, but can be shorter or longer if the circumstances of the case dictate. At the end of the IVA, providing you have fully complied with the terms of the repayment plan, and the IVA supervisor has agreed all creditor claims and distributed all monies, you will be formally released from responsibility for the remaining debt. An IVA cannot be used to deal with secured creditors, Government fines, child support agency debts or student loans.
You will be required to present a statement of your current income and expenditure to creditors in order to determine the amounts you should pay initially, and this will be assessed at the end of each year to ensure that the payments remain affordable or to see whether you could afford to increase them. Important assets, such as properties and cars may also need to be valued. Once your proposals have been finalised by the insolvency practitioner you have chosen to represent you, a meeting of your creditors is called to see if they are prepared to accept your offer, and 75% of those who attend the meeting must agree for the arrangement to be implemented. Assuming your case is accepted, you will then make your monthly payments by standing order, and creditors are unlikely to contact you further.
If you are a homeowner, you are likely to be asked to explore raising equity in your property during the final year of the arrangement. These days, due to the economic conditions and an impaired credit rating, this may be difficult, but you could be asked to extend the term of the IVA by one further year in which to address this point. An IVA is designed to protect your home, however, and it is very unlikely that you will ever be asked to sell it.
All debt solutions should be carefully considered before deciding that an IVA is the best route for you. At melaniegiles.com we recommend that you speak to several companies, before deciding how to proceed so that you can give measured and calculated thought to the best solution for the future. I am delighted that you have visited my site, and I do hope that we are able to help you make the right decision – for now and the future. In line with all commercial companies, we charge fees for our services and these will be drawn down from the contributions you will pay into the IVA, but the Nominee’s fee will be paid in priority to your creditors receiving distributions.
You should also consider carefully the implications for you if the IVA does not succeed. This could result in you becoming liable for the full debts again, including any unpaid costs of the IVA, and you could also be made bankrupt, although this is less likely these days at the hands of either the IVA Supervisor or creditors.
If you would like further information about what an IVA is or would like to talk about your financial situation and what an IVA would mean to you please call Melanie Giles on 02920 277 678 or please fill in an HYPERLINK "http://www.melaniegiles.com/ivaEnquiry.asp" IVA Enquiry Form, which I will personally respond to. If you do undergo your IVA with us you will experience total support throughout the process.
Call Melanie Giles: 02920 277 678 or fill in an IVA Enquiry Form.
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