What is the IVA process like?
 
Having more than £15,000 of debt and being unable to keep up on minimum repayments may make you a suitable candidate for an IVA. This debt solution could help you to become free of debt. These programmes are an alternative to bankruptcy and as such, creditors may be more willing to enter into such an agreement.

An IVA proposes to make monthly payments to your creditors for 60 months. We will distribute this payment evenly among your creditors. At the end of this term your creditors write off any remaining debt. So, you repay an affordable amount after taking care of your other payments.

Once intitiated, the IVA process is a legally binding contract between you and your creditors, where all interest and charges will stop being added to your debts and creditors will halt any legal action against you.

The government introduced IVAs as a less severe alternative to bankruptcy. Few other debt solutions can write off large amounts of debt.

How does the IVA process work?

As there are many variables with an IVA, it may be best to get advice that is tailored to your circumstances.

One of our professional debt advisors will contact you to discuss your circumstances and whether an IVA is your best option.

We will need all the evidence of how and why your finances spiraled out of control and we will use this to build an IVA proposal that your creditors will accept. All other aspects of your finances would need to be scrutinised so that we can aim to find out what led to your debt problems in the first instance.

Be prepared to wait 4 or 6 weeks for the IVA process to take off, as it is complex and involves many different parties. This time will be spent fact-finding, writing the proposal, organising signatures and distributing any relevant information. Once you outline your circumstances and provide us with the supporting documentation, we will normally do everything else on your behalf, though you would need to read and sign any necessary documentation.

The final version of the proposal would be submitted to the court and your creditors and a meeting would be held within 2-4 weeks. Your IP, who acts as the chair, would represent you and would propose the arrangement formally.

This meeting, which aims to establish whether your IVA proposal should be accepted or rejected, does not guarantee the acceptance of your proposal. The only guarantee is that the experienced IP is not likely to propose an IVA that won’t succeed.

The creditors with debts that comprise 75% (no matter if it is just one single creditor) will have the final say on whether or not to accept the proposal. The IVA terms will apply to everyone, whether or not they voted for its acceptance.

Should you keep up your repayments during this period, you will be completely discharged of any unsecured debts.

We want you to make the right decision and we will try to guide you in the right direction. Call us today and speak to one of our qualified consultants.

For more information see:
What is an IVA?




 
 
     

 

 
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