If
you are very seriously struggling with your debts, then an IVA
may be an option. This is a legal process for UK residents,
who normally have over £10,000 worth of debt. If we feel
that you would be more suited to an IVA, than a debt management
program, then we can point you in the right direction. In
Some cases, an IVA can write off up to 75% of your overall debt!
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If
you are thinking of becoming bankrupt, then
this could be an alternative. We will gladly help you find the
best solution for your situation.
In more detail:
An IVA (Individual Voluntary
Arrangement) is where you come to an arrangement with all of
your creditors about how to pay off your debts, which is enforceable
by the Insolvency Act of 1986. The
IVA is usually prepared under the supervision of a licensed
Insolvency Practitioner and, once in place, it has
the force of law. The good thing about an IVA is that it stops
your creditors from harassing you and it enables you to have
a great deal more control over your assets and how they are
dealt with than you would by declaring yourself bankrupt.
If you find that
you are heavily in debt and cannot meet your repayments to
creditors then an IVA may be the best plan of action for you.
We can appoint a Licensed Insolvency Practitioner who will
act on your behalf with all correspondence from your creditors.
The insolvency practitioner, with your help, will then produce
a written proposal. This will then be sent to your creditors
in accordance to a pre-determined creditors meeting, usually
held at the Insolvency Practitioners offices in the absence
of both yourself and the creditor.
The IVA
Proposal
The IVA proposal will include details of your income and expenditure,
a list of your creditors names and addresses, amounts due
to your creditors and a detailed history of your credit problems,
including your past and present circumstances. Your IVA proposal
will include a statement of affairs; this will provide you
with what you are looking to offer your creditors and over
what time period. As soon as your proposal has been finalised
your Insolvency Practitioner, may apply to your local County
Court for an Interim Order. This will provide you with valuable
protection against CCJ's, Attachment Orders and even Bankruptcy
Orders.
All of your un-secured
creditors will be bound by the IVA, provided that more than
75% (by volume) of the unsecured creditors agree to the proposal.
As soon as your proposal has been approved all interest will
stop on the debt that you owe.
After the creditors
meeting, your Insolvency Practitioner will take on the role
of supervisor of the IVA. Your Insolvency Practitioner will
review your income and expenditure on a regular basis, so
that any change in your circumstances can be reported to your
creditors. Similarly if you report to your Insolvency Practitioner
a change in circumstances, for example a job loss or a reduction
of income then your supervisor will be sympathetic and will
be able to advise you on any action to be taken.
Your creditors
are bound by the IVA and must not hassle you in any way outside
of your IVA. Your creditors cannot petition for your bankruptcy
in relation to your debts included in your agreement. However,
if you default on making payments in accordance with the agreement,
your Insolvency Practitioner is obliged to petition for your
bankruptcy. So, if your debts are serious enough to go the
IVA route, you need to follow it through properly. |
