Individual Voluntary Arrangement (IVA)

The majority of people want to avoid bankruptcy as it effects are financially crippling not only for the period of the bankruptcy but far beyond in the terms of credit rating.

Many people are in fact choosing to enter into Individual Voluntary Arrangements (IVAs). An IVA is a legally binding agreement, a proposal to creditors to repay a percentage of the debt in a monthly payment over a fixed period of time, usually five years. When people fear the consequences of bankruptcy to their homes, jobs and livelihoods, it is vital that they are aware there is an alternative. With credit easily available, managing debt becomes even more important. When debts become unmanageable, the longer it takes to seek help, the more difficult the problem becomes.

In the majority of bankruptcy cases where there is a house that has a value more than its mortgage, whether jointly owned or not or there are children living in it, the equity has to be realised, which may mean that either your wife or partner has to purchase your interest or it has to be sold further adding a burden to your personal relationship.

The alternative is an I.V.A

Who can be helped?
An IVA is only practical for people whose debts exceed £15,000.

Will I lose my house?
No, but if you have assets such as a house with equity in it, or other assets or substantial savings, they will be taken into account when making an offer to your creditors.

Will I be able to stay in business?
Yes. There is no limit on your business activities (as there would be should you be made bankrupt).

I am a professional person - will it affect my position?
No, not at all. People from all walks of life are eligible to enter into an IVA with their creditors without prejudicing their employment.

Will it become public knowledge?
No. It is strictly confidential. Only your creditors will be aware of your position. In fact even your partner need not know, although we would normally advise you to tell them and so clear the air. It can be very hard living with a secret.

How long will it last?
It normally lasts five years but in can be longer or shorter in exceptional circumstances.

Which creditors can be included?
You can include most of your creditors including Banks, Finance Companies, Credit and Charge Card Companies, the Inland Revenue and V.A.T. You can even include loans from friends or members of your family.
NB. You cannot include your Mortgage, Rent, Hire Purchase Agreements or Student Loans.

Contact 0800 074 6918 now
or log onto www.insolvencyhelpline.co.uk