Individual Voluntary Arrangement (IVA)
A much more flexible way of handling debt consolidation is with a Individual Voluntary Arrangement. Arrangements can be made at between the debtor and their creditors under supervision of an insolvency practitioner, an offer the debtor is made to the creditors which they may amend to their discretion otherwise refusal may be the likely scenario, if accepted the debt is repaid over a period or other normally five years and at the end of this any outstanding debt is written off. to the represented creditors must be in agreement for the proposal to be accepted, usually them speak 75% agreement.
with the aid off a Insolvency Practitioner, the debtor compiles a proposal outlining…
- Assets
- Financial position/status
- Any liabilities
- Repayment solution (dealing with creditors)
- an interim order is made on completion of the proposal
The advantages are having an IVA over bankruptcy are…
The fees involved with IVA a significantly lower than and his bankruptcy charges and allow you to pay your creditors of quicker.
You have more say in how you pay your creditors and or how your assets or dealt with, and you can make an arrangement with your creditors to keep say your car or home.
your credit rating may not be affected as much as it would should you declare yourself bankrupt.