IVA Advice, Help and Information on Setting up an Individual Voluntary Arrangement - IVAAdvisoryService.co.uk

What is an IVA (Individual Voluntary Arrangement)?

If you have a significant debt problem (over £15,000 in unsecured debts), you may be eligible to begin a legal process known as an Individual Voluntary Arrangement (IVA).

If you are struggling to meet your debt liabilities and feel that your debts are out of control, then an IVA could help you.

How an IVA can help you
By entering into an IVA, your total debt repayments - including costs - can be reduced by up to 75%!

• Payments are usually made over five years - You only repay what is affordable after taking into account your personal circumstances.
  
• Become Debt Free in 5 years - Any outstanding debts after the five year repayment period are written off - Debt write off applies only where an Individual Voluntary Arrangement is suitable, adhered to and at the end of 60 months. This relates to unsecured debts that were included with an IVA and does not include any secured debts, mortgages, HP or utility bills. Failure to adhere to an IVA can result in bankruptcy. An IVA will affect your credit rating for up to 72 months after the completion of your IVA. Fee payable - this is paid out of your month contributions to your IVA and will be notified to you in advance. Homeowners may be required to re-mortgage after 3 years.
  
• During the repayment period, all interest and charges are frozen
• No more correspondence - Stops creditors and debt collectors from chasing you.
• Can stop bankruptcy proceedings and bailiffs.

An IVA means you avoid the trauma of bankruptcy and can become debt free in 5 years.

Benefits of an Individual Voluntary Arrangement over Bankruptcy

• No publicity - An IVA is not advertised. There is not the stigma or publicity that normally accompanies bankruptcy. However, there is a government website where registered IVA's can be found.
  
• Privacy - Landlords or employers are not notified, unless they are a creditor.
  
• Does not effect professional or employment status.
  
• Under certain circumstances, you can still be a company director or practice professional roles involving finance.
  
• You have more control over your assets.
  
• Some assets can be excluded from your proposal. Your advisor will discuss this with you.
  
• All contact from creditors should stop completely.
  
• Your IVA Advisor will handle all correspondence while your IVA proposal is being prepared. After which the IVA is legal binding. The creditors should not contact you again. If they do, your IVA advisor will deal with the situation.
  
• Less costs for creditors.
  
• Administration costs are normally lower than Bankruptcy, enabling higher dividend payments for creditors.
  
• Not all creditors need to agree.
  
• Creditors who vote against the IVA are still bound by it as long as the required majority (75% by value of the debt,) of the creditors who have voted agree to it.
  
• No need to attend court - You will not be required to go to court for the IVA. Just be available to answer questions on the phone at the time of the creditors meeting.
  
• Legal Protection - Court proceedings can't be brought against you in respect of any of the debts bound by the Individual Voluntary Arrangement. This is provided you maintain the payments agreed in the IVA.

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