IVA Bankruptcy advice Home

khurambaber — Fri, 23 May 2008 00:54:59 CDT

IVA - Helping UK Debtors Out Of Debt Crisis!

IVA stands for Individual Voluntary Arrangement and they specifically help UK debtors find their way out of debt. Nearly 20 years ago, the Insolvency Act of 1986 introduced the IVA. It is a formal, legally binding process that allows a debtor struggling with unsecured debts to make a payment proposal to their creditors under the guidance of an Insolvency Practitioner (IP).

Why Is IVA Such A Popular Option In UK Today?

There are various reasons behind the increasing popularity of IVA UK. One of the main advantages of IVA is that it helps write off a significant amount of your debt. All your high interest rates are frozen and you simply make repayments for 60 months and after that you’re debt free (even if you’ve not paid off your balance fully). You retain your home, car and you also get to re-establish you’re credit rating.

How to Organize an IVA?

An IP will assess your financial situation and decide on a repayment amount which suits your requirements. An application form will be sent to the court for an Interim Order following which no creditor can take legal action against you.

For an IVA to be approved a creditors meeting will be arranged which you are expected to attend. Your creditors will also be called upon to vote for or against the IVA arrangement which has been determined by the IP. If the creditors vote for the IVA it gets approved immediately. IVA needs the support of 75% of the creditors who represent your total debt. However if 25% of the creditors vote against the IVA UK the meeting will be suspended for a later date. Only qualified professionals can administer an IVA. Off late a number of IVA firms have sprung up online and they claim to provide you with the best effective IVA package which is a true alternative to bankruptcy. So you can choose to organize you’re IVA debt solution through a fast and secure online process.

I Have Made It To My Last IVA Payment, What Next?

Once you have dealt with your last IVA payment, your IP (who is also the trustee) will issue a ‘Statement of Completion’ within 3 months of the last payment of the IVA. You are DEBT FREE hereafter.

If you have been thinking of setting up an IVA it is essential to get IVA advice and work with professionals who are independent. Signing up for an IVA UK might involve a commitment of up to five years so it is important you know what you’re getting into. Free IVA advice ensures that you have all your facts in front of you and are choosing the best solution for your needs.

Advice IVA UK - IVA UK - Recently Updated Pages

IVA Bankruptcy advice Home