Personal Debt

IVA's

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An IVA is a personal insolvency procedure which is an alternative to bankruptcy

An individual voluntary arrangement (IVA) is a formal agreement between you and your creditors, which allows you to make affordable monthly payments towards your debts, usually over five years, although this could be less if you can pay your debts off sooner. At the end of your IVA any balance left owing to your creditors (unsecured debt) is written off.

It is also possible to make a one-off payment to settle your debts, typically known as a lump-sum IVA, where you agree to pay a certain amount at a certain time in full and final settlement of your unsecured debts, which can include a percentage write off.

As an IVA is a legally binding agreement, this means once you enter into one, so long as you hold up your end of the bargain, creditors can take no further action against you to recover any debts which are now “bound” by the IVA, meaning that they cannot contact you directly, which includes making you bankrupt.

IVAs must be administered by an insolvency practitioner (such as ICS), who will assist you in the process of proposing your IVA and will serve to balance the interests of you and your creditors, so that an IVA Proposal is put forward which is capable of your creditors accepting.

An IVA is a personal insolvency procedure which is an alternative to bankruptcy. If an IVA is the best solution for you, you will benefit by avoiding the consequences of bankruptcy, coming to an arrangement with your creditors to settle your debts over an agreed period of time, usually with an agreed percentage write off of total debts. Your creditors will generally benefit from an IVA when compared to bankruptcy through an increased return against the debt owed.

Can I apply for an IVA?

  • Are you struggling to pay your debts?
  • Are your monthly outgoings more than your income due to debt?
  • Are your debts greater than the value of your assets?
  • Would you benefit from having one affordable monthly payment to settle all your debts?
  • Have you had a recent business failure and have personally guaranteed business debts you cannot afford to pay?

How we will help you:

  • We will review your financial position
  • We will identify what’s affordable for you to pay each month
  • If you qualify for an IVA, we will deal with the IVA process
  • We will deal with your creditors on your behalf

What is the IVA process?

  1. Once we have established that an IVA is the right debt solution for you, we will help you in putting together your IVA Proposal. We will only ever put forward an IVA to your creditors if we think that it is going to be accepted.
  2. To be agreed, an IVA must be approved by at least 75% of your creditors by value. This is voted on via a creditor decision procedure such as a Virtual Meeting – we will handle arranging the meeting and dealing with all the formalities.
  3. Once approved, all of your creditors are bound by the terms of the IVA and can no longer chase you for money owed. When you have complied with all the terms of the IVA, your IVA will be completed, any balance left owing to your IVA creditors which has not been paid will be written off and you will be debt free.

Speak to one of our expert personal insolvency advisers today to see if you qualify for an IVA.