IVA - Insolvency
IVA or Individual Voluntary Arrangements in England, Wales & N. Ireland
1: IVA's should only be entered into in extreme circumstances.
2: An IVA is a legally binding agreement between a debtor and their creditor/s.
3: IVA's are only available in England, Wales and Northern Ireland. Protected Trust Deeds in Scotland are the Scottish alternative to IVA's.
4: Individual Voluntary Arrangements usually last for 5 years or 60 months but can go on for longer in certain cases.
6: When entering an IVA a person would be expected to disclose all of their income and expenditure details in order to establish a disposable income.
7: The disposable income is the amount agreed upon which the individual will contribute on a monthly basis towards the IVA.
8: The debtor will agree to pay the creditor an agreed amount each month, after 60 monthly payments the debtor would be free of the debt and any remainder owed or outstanding would usually be written off by the respective creditor/s.
9: A meeting of creditors is where the individual voluntary arrangement is proposed and the majority creditor has the right to object, their acceptance is pivotal to the IVA going ahead.
10: An IVA is not always the best solution for people who are struggling and continue to do so.
11: Only an insolvency practitioner can manage and supervise an IVA for a consumer. An insolvency practitioner is a qualified individual who practices insolvency.
12: All IVA fees and costs should be disclosed to the debtor prior the IVA proceeding and no upfront fees should be charged to the debtor.