How to arrange an IVA
In this article we explain the processes that are involved with getting an Independent Voluntary Agreement (IVA) approved.
It is important to realise that not all circumstances are appropriate for an IVA. You should always take professional advice to determine if this is the best solution for your debt problems.
Having discussed your circumstances with a licenced insolvency practitioner (IP), and decided that an IVA would be right for you, then the IP will carefully examine your financial situation to determine how much you can afford to pay towards your monthly debt repayments.
Your assets, such as your house, will be taken into account and if you have sufficient equity available this may be used to pay a one off lump sum to your creditors, via a remortgage.
The insolvency practitioner will work with you and your creditors to draw up an agreement which is then presented to a court for legal ratification.
As this may take some time, your IP may decide to take out an "interim order" which provides legal protection from your creditors. This may be used, for example, if your mortgage company is threatening to repossess your house.
The use of interim orders is entirely dependent on your exact circumstances and may or not may not be arranged by your insolvency practitioner.
Should your IVA proposal be accepted by your creditors, then you and they are legally bound to meet its conditions. This means that you must meet the agreed monthly repayments and your creditors can no longer pursue you for their money.
Assuming that you meet the conditions of the IVA throughout its life, you will then be legally free of your debts, even if there is still debt outstanding.
As expert professional advice is required at every stage of the IVA process, it is imperative to discuss your debt situation with an insolvency practitioner as soon as possible.
Money High Street is pleased to have partnered with Re10, licenced insolvency practitioners who are very experienced in arranging IVA's.
To arrange a confidential and impartial discussion with Re10 to discuss your situation, please complete the form on this page.
