Why Use an IVA
An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to make a single reduced payment each month. This lasts for an agreed period of time normally 5 years. Once agreed, creditors are not allowed to add interest or charges to your accounts by law. The agreement is fixed meaning that creditors cannot randomly demand changes to it.
Only an Insolvency Practitioner (IP) can put an IVA together. We will need to ask you a number of questions about your financial situation in order to calculate how much you can realistically pay your creditors each month. This is based on what you can afford, not what creditors are asking for.
Once proposals for repayment have been drawn up, an Interim Order is applied for. Whilst the Interim Order is in place, your creditors cannot take action against you without asking the Court.
A meeting date will be arranged and full proposals sent to all creditors who will then have the opportunity to vote on them. If enough of your creditors (75% in value) agree, the IVA will become legally binding. You then make agreed payments for a number of years normally 5 and providing you have completed your Arrangement as agreed and once the final payment is made, your liabilities to your creditors are discharged in full. Many Insolvency Practitioners will normally charge you an upfront fee for putting together the Arrangement. WE DON'T
Our practitioners work within the guidelines of R3 and as part of the Association of Business Recovery Professionals.