Individual Voluntary Arrangement (IVA) Help and Advice
IVAs are an alternative to bankruptcy. In place of bankruptcy, an individual voluntary arrangement (IVA) may be made. It is an intentional bankruptcy. A Licensed Insolvency Practitioner assists the individual with their IVA by offering guidance and assistance. It is a legal procedure that offers protection from creditors to a person who is dealing with debt. In addition, it offers creditors a higher return than bankruptcy does. It is a debt management plan.
People might get seriously indebted for a variety of reasons. A person might propose to their creditors a composition in fulfillment of their debts or a plan of arrangement of their affairs through the IVA process. A composition is a contract whereby creditors consent to accept a specific amount of cash as payment for the obligations owed to them.
To whom may an IVA be applied?
An Individual Voluntary Arrangement may be requested by private parties and their spouses or partners.
People who operate a business as sole proprietors can apply for an IVA, and the business may be able to continue.
Limited company directors may submit an IVA application.
IVAs can be entered into by some professionals who are prohibited from working as bankrupt, such as accountant and lawyers. However, they must obtain the approval of their professional body.
Additionally, even if bankruptcy proceedings are already underway, a debtor may still submit a proposal for an IVA.
Advantages of an IVA
You pay reasonable monthly installments over a period of five to six years.
As long as you continue to make your mortgage payments and any other secured debts against your property, you will often be able to keep your house if you are a homeowner.
Before your IVA is agreed, there are no setup costs.
Once your IVA is underway, there are fees, but these are determined by your creditors and are included in your monthly repayments.
If you have a lump sum to provide, it can either be paid as a single, “full and final” settlement or as a mix of a lump sum payment and subsequent monthly installments.
Any outstanding unsecured debt that remains after your final payment is written off.
Those who possess real estate, whether it is financed by a mortgage or is theirs entirely, will be subject to an equitable clause as part of the sale of assets to pay creditors in an IVA. This will boost the payout (also known as a “dividend”) to your creditors. IVAs are legally binding, thus your creditors are prohibited from suing you while you are in an IVA. However, your creditors may ask for your bankruptcy if you fall behind on payments or fail in your IVA. Get IVA debt help and advice today with Acme Credit Consultant.
