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 £15,000
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 70% of your overall debt!
Remember, we are here to help!
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.
For
a no obligation enquiry,
or just for some friendly advice click
here
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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 70% (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.
For
a no obligation enquiry,
or just for some friendly advice click
here
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