IVA – Individual Voluntary Arrangement
An Individual Voluntary
Arrangement (IVA) is a formal agreement between a person and their
creditors. If a person can not make their repayments in full but are
able to pay something each month then an IVA proposal can be
established. The proposal sets out exactly what the person will pay
their creditors each month. This is normally over a period of five
years.
Clients of IVAuk benefit
from the services of selected leading Insolvency Practitioners who draft
the proposals on their behalf. What the IP will do is examine the
clients personal finances and calculate how much they can realistically
be prepared to pay each month.. The period over which the IVA proposal
covers can be reduced if a lump sum can be raised through the sale of
property or other assets.
Once the initial draft has
been completed an Interim Order can be applied for. Whilst the Interim
Order is in place the client’s creditors can not take action against
them without first approaching the court. A creditor’s meeting will then
be scheduled where creditors will be asked to vote on whether they
agree with the terms of the proposal. If creditors representing 75% of
the debts agree the document will become legally binding for all of the
creditors. .Once the client has made all the payments set out in the IVA
over the five year period it is deemed that all liabilities have been
settled.
To ensure your best chance of significantly reducing your debts
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