IVA

Posted by freedebthelp on 2008-11-05 in 60, advice, arrangement, bankruptcy, card, companies, company, consolidation, credit, debt, free, help, in, individual, iva, ivas, loans, management, months, problem, solutions, uk, voluntary      

An Individual Voluntary Arrangement (IVA) is a formal agreement between someone who owes money (the debtor) and the people he or she owes money to (creditors), available in the UK. An IVA proposal sets out how the debtor is going to repay the creditors, usually over a period of five years.

If you are thinking about setting up an IVA (Individual Voluntary Arrangement) it's essential to get the best advice possible, and to work with an organisation that is both professional and independent.

By getting impartial IVA advice you can be sure that you have all the facts and are choosing the best debt management solution for you.

Good IVA advice is also important because signing up to an IVA can involve a commitment of up to five years, so it's important that you understand what you're getting into before you start.

IVA advantages

  1. There isn't the stigma or publicity that accompanies bankruptcy.
  2. A business can continue to trade and generate income.
  3. The debtor, via the insolvency practitioner, is involved in the choice of assets made available to the creditors since the arrangement is designed to suit the debtor's situation. All this is providing the creditors are no worse off than if bankruptcy had taken place.
  4. Administration costs should be lower than bankruptcy, enabling higher payments for creditors.
  5. Creditors can still claim tax relief against bad debts just as with bankruptcy.
  6. Creditors who vote against the IVA are still bound by it as long as 75% of the creditors in terms of the amount owed agree to it.
  7. Creditors likely to recognise that they must accept less than all the money owed.
  8. The debtor does not suffer from the same restrictions as those imposed on bankrupts. For example, a debtor can still be a company director, in the armed forces, hold public office, retain their professional status or trade under a business name.
  9. The debtor is able to operate a normal current account, as long as it does not have an overdraft facility.

If you are interested in an IVA please either call 0800 074 6918 or  00 44 208 371 5973 or apply online by CLICKING HERE
 

Comments are closed.