Individual Voluntary Agreement IVA

Individual Voluntary Agreement IVA

An individual voluntary agreement IVA is an alternative solution for those people that want to eliminate their debts without needing to declare bankruptcy. In fact, an individual voluntary agreement IVA is considered an excellent alternative to bankruptcy though neither is mutually exclusive to the other. This means that even if you have gone bankrupt, you can still propose an individual voluntary agreement IVA to your creditor.

Individual voluntary agreement –apply to the Court

In case your arrangement is accepted after your bankruptcy, you, the debtor, can still apply to the Court to have your bankruptcy order annulled. However, such agreement can be proposed only while the bankruptcy has not been discharged.

Official Receiver

However, if you have proposed an individual voluntary agreement IVA after receiving a bankruptcy order then you can still nominate the name of the Official Receiver to supervise the entire arrangement. The Official Receiver will however play a very restricted role in the arrangement which is why this option has not become too popular.

Removal of debt

In an individual voluntary agreement IVA, the creditors will agree to remove some part of the debt owed to them by the debtor and the creditors must also agree to receive a certain sum of money as monthly repayment by the debtor for a period of time that cannot exceed five years. The Government, for its part, is not averse to making access to individual voluntary agreement IVA easier. This is because these agreements are the most popular options that individuals are using in order to be rid of insolvency situations.

The individual voluntary agreement IVA is an option that is widely used in the UK. Such an agreement makes managing debt a whole lot simpler and much more effective as well. It is important to understand the working of the individual voluntary agreement IVA.

The first step that you will need to take before entering into an individual voluntary agreement IVA is to get in touch with a debt specialist who will discuss your present position and then show you the pros and cons of such an agreement. Next, if the IVA seems to be right for you, you must then get in touch with an Insolvency Practitioner.

You also need to collate information related to your monthly income and your monthly expenditures. You must also create a list containing the names of all your creditors and you need to have information related to your account numbers and the amount of money that you owe to each creditor.

Once the Insolvency Practitioner helps you with collating information and with other documentary requirements you can expect your individual voluntary agreement IVA to be prepared by them. The Insolvency Practitioner must inform the local county court that the individual voluntary agreement IVA is the best option for you and will then get you a case number. This stage is referred to as The Proposal.

Next, get in touch with the creditors and meet them and ask them to vote for or against the proposal. If the proposal is accepted by at least 75 percent of your creditors, your proposal will have been accepted. This is when your individual voluntary agreement IVA starts and leads to debt interests being frozen and your creditors will stop calling you to ask for their money.

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