IVA = Your Debts Solved
IVA UK : A Debts Solved Service
IVA - Detailed Explanation
For a detailed overview of an IVA please read on, however, if you would like us to explain the workings of an IVA and assess whether an IVA is suitable for you, please Contact Us.
An IVA is a debt solution available to any UK individual with unsecured debts over £15,000 who are struggling to meet their commitments and have the ability to make reasonable monthly contributions to creditors.
The majority of people want to avoid bankruptcy as its effects are financially crippling not only for the period of the bankruptcy but far beyond in the terms of credit rating.
In the majority of bankruptcy cases where there is a house that has a value more than its mortgage, whether jointly owned or not, or there are children living in it, the equity has to be realised. This could mean that either your spouse or partner has to purchase your interest or it has to be sold, further adding a burden to your personal relationship.
In some cases bankruptcy can only be the best advice but a different debt solution is the IVA which was introduced as an alternative to bankruptcy by The Insolvency Act 1986.
An IVA is not commonly offered as a debt solution because they must be administered by a qualified, Licensed Insolvency Practitioner and many debt advisors have no formal qualifications to deal with your debts in a reasonable way.
So, what are the main points of an IVA?
An IVA is highly regulated by an Act of Parliament and is less likely to be open to abuse by those qualified to provide this service.
An IVA is not advertised in any newspaper unlike a Bankruptcy Order.
Consideration is given to protecting the home when setting up an IVA.
Fees are regulated in accordance with the Insolvency Act 1986, and are paid from the affordable monthly contributions as sanctioned by creditors.
Fees are set out in the proposal so that you know exactly who is being paid what, when and from where.
A named Licensed Insolvency Practitioner acts as Supervisor throughout the term of the approved IVA.
Once the IVA is approved, all unsecured creditors named in the IVA arrangement are bound by it once the IVA is approved.
When the proposals are approved, interest on credit card and accruing debts cease from that date, on any debts in the IVA.
Those creditors who are bound by the proposal cannot petition for your bankruptcy in relation to the debts in the Arrangement and also agree to waive the balance of their debt when the Arrangement has successfully been concluded.
When an IVA is approved by creditors you are fully protected from debt enforcement and bankruptcy as long as you do not breach the terms of the IVA.
Only a Licensed Insolvency Practitioner (IP), belonging to a recognised professional body, can act as your Supervisor in an IVA.
If your financial circumstances change beyond your control the Licensed Insolvency Practitioner will always be sympathetic and advise you on the appropriate course of action to assist you.
A few generally asked questions about an IVA.
Q. How do I set up an IVA?
A. Please Contact Us and we will assist you through the process.
Q. How long does an IVA last?
A. Generally five years, but this can change, again please Contact Us so that we can advise further.
Q. How much would I pay into an IVA?
A. This depends on your circumstances, amount of debt, income and essential expenditure. Monthly contributions are based on personal affordability.
Q. Who could an IVA help in solving debt problems?
A. Anyone with debts over £15,000 and an income to sustain suitable repayments. Individuals who should definitely consider an IVA as an alternative to bankruptcy are Company Directors, Armed forces personnel, Army, Navy and Royal Air force as these people would be unable to continue their careers should they be made bankrupt.
Any UK individual with unsecured debts over £15,000 and struggling to meet their commitments would be advised to consider an IVA. Please Contact Us so that we may assist further.