IVA

An Individual Voluntary Agreement (IVA) could be an effective solution when you are no more able to repay your debts comfortably. It is an agreement between you and your creditors that makes use of the government legislation to come up with a repayment plan that you can afford. It may also write off much of your debt, offering you freedom from your worries. In recent years, the IVA has been regarded as an alternative to bankruptcy and insolvency.

You will need the services of an insolvency practitioner to start with your IVA proceedings. While the proceedings take place, no creditor can take legal action against you if an interim order has been granted by the court. The IVA proposal containing the repayment agreement will be drafted only after your current financial situation has been assessed. Once the agreement gets finalized, it will be sent to all your creditors with the permission of the court. Thereafter, you are required to call a meeting with your creditors. If majority of creditors agree to the proposal, it will become binding. Otherwise, the meeting will be adjourned for up to two weeks. Throughout the life of the IVA, you are legally bound to make the agreed monthly repayments directly to your insolvency practitioner, who then pays a dividend to your creditors on an annual basis. As long as you continue to make this payment as per the agreement, no further charges or interest can be charged upon you by your creditors.