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IVA Information
An IVA is an Individual Voluntary Arrangement, often a method that is preferable in many ways to the traditional route of Bankruptcy. They are only available to individuals and not organisations. An Individual Voluntary Arrangement is a formal agreement proposed to the creditors (those people that are owed money) on behalf of the debtor.They can only be administered by Insolvency Practitioners (IPs) who are qualified and regulated by a number of official professional bodies including the different Law Societies of the UK and the Institute of Chartered Accountants.
An IVA is a personal contractual agreement made by an individual, as such it can be tailored to the particular circumstances of the debtor and the creditor. Individual Voluntary Arrangements are finally agreed at a meeting between the Creditors.
At a vote between those creditors, 75% percent of them (in value) must agree on the arrangement. At present people across the United Kingdom are visiting Debt Management specialists to arrange Individual Voluntary Arrangements, rather than bankruptcy.
One of the benefits of an Individual Voluntary Arrangement (IVA) is that one of your primary assets, your house is not sold to pay back your creditors. Some of the equity in your home may need to be released but you get to keep your home. This is obviously beneficial to those people with families who wish to resolve mounting debt pressures effectively without resulting to the extreme solutions such as bankruptcy.
One of the disadvantages of an Individual Voluntary Arrangement is that you have to keep making repayments (however small) and so the debts are not discharged until you have repaid the agreed portion of the debt back to the creditor(s).
If you have already filed for Bankruptcy, a Fast Track Voluntary Arrangement can be implemented by the Official Receiver, who acts on behalf of the debtor in the arrangement of the proposal, and communicates and corresponds directly with the creditors in all aspects of the arrangement.
There are some major advantages to taking an IVA over Bankruptcy. If you are considering bankruptcy or an Individual Voluntary Arrangement (IVA), call FREE on 0808 22 22 123.
Its as easy as 123, call 0808 22 22 123 or fill in our online enquiry form.