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IVA

There is an alternative to bankruptcy in the UK, it is called an Individual Voluntary Arrangement or IVA, (in Scotland a similar arrangement is called a Protected Trust Deed) This is a way of avoiding the stigma, and financial, as well as other legal repercussions of bankruptcy proceedings.


The IVA began life in 1986 under the Insolvency act, and is a way for debtors to engage in a formal agreement to repay creditors without the need for legal action. This arrangement usually only covers unsecured debt, such as credit cards, and is not usually related to secured debt, such as a mortgage, although it should be pointed out that this is not always the case.


An IVA is a formal contract that is based on the debtors available cash, the size if their income and third party payments, and is usually assessed on a combination of these factors. It basically assesses how much is owed, and how much can be repaid immediately, and/or over the long term to the creditors.


All the creditors decide if the proposal by the debtor is acceptable, 75% of the creditors have to accept the agreement, the advantage to most is that they will receive more of their cash back than if they went for bankruptcy.


Because of the advantages to both sides the IVA is becoming a more common method of dealing with debts that are unpaid, being seen as a good alternative to bankruptcy, which often has little benefit to either side.


It is also possible to enter into an IVA even after bankruptcy if the debts are undischarged. In this case it is usual for the Official Receiver to have the last word on the agreement. This agreement is not usually as beneficial to the debtor so is not used very often.

Latest IVA news

Insolvency areas could get IVA help

There are certain areas in England where people face rather low financial stability. Yet, there is something that can offer these people assistance – individual voluntary arrangement answers.

Debt worries? IVA could be the answer

Those who have not yet heard of the individual voluntary arrangement aka IVA should know that it can help people who worry that they might not find the necessary amount of money to fund their retirement.

IVA help for credit card interest rates?

Many people are still accustomed to spending frivolously, and old habits die hard as it would seem is the reality for many Britons today, who, thankfully can now get access to expert debt help and advice.

Individual voluntary arrangements going up

Figures recently released on insolvencies in the UK have revealed, as a whole, increases accross the board. This years’ first quarter revealed a near 18% increase in the number of personal insolvencies.

How to clear credit card debt?

Now that the new government is putting plans into place people may be pleased to hear that among their first plans are to give the option to regulators on controlling credit cards with ‘excessive’ interest rates – this could help those looking how to clear credit card debt?

Worried about credit card debts?

Those with excessive credit card debts may find that an iva allays their fears of going bankrupt or potentially having their home repossessed. Many people are still not aware of all the benefits that an iva offer because of misinformation throughout the internet.

IVA information for employed people

An iva or individual voluntary arrangement is only available to employed persons – and now that they seem to be in the ‘debt solution limelight’ there could be an uptake in iva information for employed people.

Can an IVA stop home repossession?

People worried about losing their home to repossession could help themselves by asking a debt expert if an iva can stop home repossession after ongoing worries about not being able to afford paying debts.

IVA help with credit card debts

Credit card debt is rife in the UK right now and many people are finding it near on impossible to repay their credit card debts in full. This could be due to the recession, pay cuts, or a partner losing their job – either way their income has gone down and costs gone up.

Is bankruptcy the last resort?

Many people in debt may be asking themselves is bankruptcy the last resort while looking for ways to get themselves out of their debt predicament.

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