What is an IVA?
An Individual Voluntary Arrangement gives you the opportunity to be debt-free and
stress-free within a period of 60 months.
Suitable for those with considerable debts (generally £15,000 +), an IVA is
managed by qualified and licensed liquidation consultants, who arrange, on your
behalf, to pay a reduced amount to your creditors in final settlement of your arrears.
How do IVAs work?
First of all we will conduct a confidential evaluation procedure to determine your
eligibility. If your circumstances meet the criteria, a licensed liquidation consultant
(Insolvency Practitioner) will be appointed to take control of your creditor liaisons,
reaching agreements with them regarding the reduced amount that they will accept
as settlement of your debt.
Your consultant will then continue to act as your representative, taking responsibility
for distributing the agreed amounts on your behalf. During the 5 year period of
reduced payments, charges and interest on your account(s) will be frozen and any
communication with your creditors will be dealt with by your personal consultant.
This allows you to relax, safe in the knowledge that your finances are in the hands
of a professional.
When your obligations are complete, and your creditors have received the final repayment
as agreed, the balance of your debt will be written off.
IVAs are legal contracts and as such, you are at risk of bankruptcy if you do not
adhere to the conditions set therein. It is also important to be aware that your
credit rating will be affected by an IVA for up to 6 years following completion
and that the writing off of debts will only be effective upon the adherence to and
conclusion of the terms set out in your IVA. To qualify for an IVA, you must be
resident in England/Wales/Northern Ireland and if you own your home, you may need
to re-mortgage after a 3 year period.
For more information or advice regarding IVA's, or other methods of debt resolution,
such as Debt management plans, please contact us.
For more information and for your options explained visit www.insolvency.gov.uk.