Benefits of an IVA

An IVA Offers an Alternative to Bankruptcy

The IVA (also known as an Individual Voluntary arrangement) was introduced by the Insolvency Act of 1986 as an alternative to bankruptcy.

An IVA enables the debtor to make a debt settlement proposal to his/her creditors to pay off a percentage of the debt over a period of time via monthly repayments.

This means that a portion of the debt (often as much as 75%) is written off completely. When the debt has been repaid according to the terms of the IVA, it is cancelled.

How Does an IVA Compare to Bankruptcy

With an IVA:

  • Your employment status is not affected

  • You can continue to act as a director

  • You can hold public office

  • You will not receive any adverse publicity in the local papers

  • You can have a regular bank account (but no overdraft facility)

With Bankruptcy:

  • There are certain jobs you are not allowed to hold

  • You cannot be a company director

  • You cannot hold certain types of public office

  • You receive adverse publicity. Bankruptcies are announced your local paper along with your name, address and occupation.

What are the Benefits of an IVA

  • With an IVA as much as 75% of your debt can be written off

  • You make monthly repayments according to what you can afford

  • Once the IVA has been set up, your creditors cannot bring any other action against you.

  • You can have a regular bank account

  • You won’t receive any negative publicity as a result of your IVA

  • An IVA may help you to safeguard your property

  • Having an IVA does not affect the ability to hold public office

  • An IVA does not affect your professional or employment status

  • Setting up an IVA enables you to avoid bankruptcy

Who Might an IVA Benefit

There are many people whom an IVA might benefit.

All individuals, sole traders and partners who are experiencing debt problems can set up an IVA.

  • Sole traders and partners often find that an IVA is a good solution to their debt problems as it lets them secure the survival of their business.

  • People who own property can benefit from an IVA if they would risk losing it by going bankrupt.

  • If you owe money to people or companies that wouldn’t agree to an informal debt management arrangement, then an IVA might be a good solution.

  • If you’ve already tried an informal arrangement, but it’s failed then you might want to think about an IVA

How to Apply for an IVA

If you would like to apply for an IVA then please send an email to:

info@iva-advice.com

We work with a team of reputable and reliable insolvency practitioners who can help you set up an IVA quickly and easily.

IVA Advice

If you would like to talk to an independent IVA advisor free of charge, before completing the application form, then please:

a) Call us on freephone 0800 138 5445

or

b)Send an email to info@iva-advice.com