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Individual Voluntary Agreements (IVAs)
If your creditors are threatening legal action and you have been unable to achieve a resolution, one alternative available to you is to enter into an Individual Voluntary Agreement (IVA) with your creditors. An IVA is only an option if you have some money and can make regular payments towards paying off you debt. You will need to engage the help of an Insolvency Practitioner (IP) to put together your IVA proposal. The basic steps of putting an IVA in place are outlined below:
- The proposal sets out a plan for you to make monthly payments to repay all your creditors.
- Once the IVA is drawn up, the IP will request an interim order from the court. As long as the order is in effect, your creditors must first ask the court before they can take legal action against you for your debts.
- The IVA is submitted to your creditors. They will vote if they should accept the IVA proposal. At least 75% of your creditors must agree to it.
- If they agree to the proposal, the IVA will be put into effect. The IVA is legally binding so you creditors can not change their minds once they agree to it. Once it is put in place, all of your liabilities will be discharged so long as you keep up your repayments.
So long as you keep up your payments, you may not have to repay all your debts (depending on your agreement with your creditors) but the IVA will stay on your credit record for 6 years.
Entering into an IVA with your creditors is an extreme solution to your credit problem and should not be taken lightly. Before accepting an IVA or considering it, you should seek professional advice and explore all your alternatives.
Use our personal loan instant quote service to begin your research into both secured and unsecured loan alternatives today!
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. All loans are subject to status. Written quotations are available directly from the lender on request to the lender. A broker fee might be due on transactions completed through this site.
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