An Individual Voluntary Arrangement (IVA) is where there has been a formal agreement comprised between you and your creditors (the people money is owed to). The IVA proposal will set out how the debtor will repay the creditors, over a maximum five-year period.
One of the main reasons as to why IVA’s are so popular with both the creditors and debtors is because the fees are much less than the fees incurred for court costs and Official Receiver fees required in bankruptcy action.
The provisions which relate to the effective and legally binding system of individual voluntary arrangements are set out in the Insolvency Act 1986. The procedure allows you to obtain protection of an interim order if you wish to formulate a proposal to put forward to creditors under an IVA.
We will work closely with you to ensure that the IVA is the best route and solution for you and your business if all your debts have accumulated from the business. Whilst ensuring we have a true figure of your expenses that we will be aiming to provide you with a comfortable means of living as well as enabling you to clear the unsecured debts.
The interim order will buy you time so that our recommended Insolvency Practitioner can help you formulate a realistic proposal and put it to all your creditors for their approval. Where feasible we will also write off as much of the unsecured debt as reasonably possible.
Once a proposed IVA has been formulated and approved by you, the IP will be responsible for sending it to your creditors who will vote at the Meeting of Creditors. If there is a majority vote of 75% or more, all creditors will be bound by the terms under the IVA.
The IVA can be formulated for up to a period of 5 years which will be managed by the IP where all you need to do is make a regular monthly payment which will be distributed amongst your creditors. During the IVA, all interest and penalties will also be frozen to ensure your debt only gets smaller and not any bigger!
For more information call us now on 0121 232 4622 for a free no obligation consultation. We’re on your side!
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