IVA

Individual Voluntary Arrangement

An IVA is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled.

Due to its formal nature, an Individual Voluntary Arrangement - IVA has to be set up by a licensed professional.

Unlike advice sector firms our teams do not charge any upfront fees for putting together a client's proposals for an Individual Voluntary Arrangement - IVA.

How do I start an IVA?

You complete and return our standard application form together with copies of all recent bank statements. We will then discuss areas with you such as what the costs of the IVA are.
On receipt of your questionnaire one of our consultants will contact you in order to talk through your application. At this juncture we will discuss whether to choose bankruptcy or an IVA. We can also talk to you the IVA criteria.
If our case meets our standard criteria you will accepted onto the Individual Voluntary Arrangement - IVA programme and referred to one our panel members. At this juncture we will provide you with all the help and advice you need in order to start an IVA
The panel member will now act for you and will then contact all your creditors informing them that they are now your legal representative. At this juncture we can always answer questions on how does an IVA work.
Based on the information provided by you an Individual Voluntary Arrangement - IVA proposal will be draughted , this is a written agreement which sets out the actual terms of the Individual Voluntary Arrangement - IVA.
In order to legally protect you from your creditors a form of legal protection called an "interim order" is granted. This is a process which enables full protection from your creditors.
Once the Interim Order is granted no legal action may be bought against you. Having an interim order means you are fully protected from creditors issuing or continuing bankruptcy proceedings.
The panel member then prepares a statement called a "Nominees Report" which portrays a professional opinion as to whether the Individual Voluntary Arrangement - IVA is a bonafide offer.
Shortly afterwards a meeting of creditors is held. In theory this meeting consists of all the creditors gathered in a room to discuss the Individual Voluntary Arrangement - IVA. In practice, however, creditors rarely attend because all voting is done prior to the meeting.
Once the Individual Voluntary Arrangement - IVA is approved you are legally contracted to keep up your monthly Individual Voluntary Arrangement - IVA payments. Once accepted your creditors can never bother you again. This monthly payment will be easily affordabe because it is based on your disposable income.

IVAs should be considered instead of bankruptcy for the following reasons:-

If you want to avoid bankruptcy is for personal reasons.
If you want avoid bankruptcy for employment reasons.
If you have a good, steady job and secure income levels a stable family life and do not want to upset the balance.
If you are serious about committing yourselves to paying out virtually all your net disposable income in an IVA.
If you can validly expect windfall income such as a legacy from a relative, profits from a business or sale of a house to come in within 5 years.
If you are disciplined enough to keep within your expense budget, avoiding further credit, either because your existing difficulties came about other than through excessive personal spending or you have since learnt to curb any such excesses.
If you have creditors that will object to a debt management plan.
If you have creditors that will definitely accept an IVA and support you.
An IVA can be used to force a solution on creditors who are taking a non-commercial stance in their dealings or being merely vindictive.
In an IVA it is easier to get a mortgage, whereas in bankruptcy it is very not possible until discharge.An IVA will stop all interest on the debt.
The IVA will leave the client debt free (subject to terms and conditions) after 5 years maximum.
In a IVA you can keep your property, unlike bankruptcy where if you have equity you will need to sell it.
In an IVA you get to keep control of your assets, whereas in bankruptcy they come under scrutiny.
An IVA is better for your career progression whereas bankruptcy may cause problems in certain industry sectors.
If you can do an IVA you can still be a director of a limited company, whereas in bankruptcy may you cannot.
An IVA has less social stigma than bankruptcy.
An IVA is easier on you credit rating than bankruptcy.
In an IVA it is easier to get a bank current account, whereas in bankruptcy it is very difficult.
Bankruptcy involves lengthy court procedures, whereas an IVA avoids court action
Bankruptcy is more expensive to set up than an IVA.

If you wish to discuss what an IVA stands for and how an IVA can help you please complete the following form or telephone freephone 0800 074 6918.

IVA Knowledge Base Menu

ENQUIRY FORM

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IVA's

The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.

In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]

What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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IVA

Individual Voluntary Arrangement

How do I start an IVA?

IVAs should be considered instead of bankruptcy for the following reasons:-

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