IVA's (Individual Voluntary Arrangements) are legally binding debt solution agreements for individuals, couples or partners, that can provide a better alternative to personal or limited company bankruptcy. The IVA is made between the debtor and the institutions, companies and other parties they are in debt to, where the debts are not secured against property (unsecured creditors). The Individual Voluntary Agreement must be supervised by a Licensed Insolvency Practitioner IVA company such as Probitas, one of the most experiences insolvency practitioners in Sheffield. Probitas have a wealth of IVA information and debt advice available from their highly-qualified team.
If you are looking for debt advice to help choose between IVA or bankruptcy or want to ask an experienced IVA company more about the benefits of a company IVA, there are a number of important facts that the individual considering a business or self employed IVA should be aware of. IVA's are designed to be a robust settlement solution, with the debtor paying an affordable amount each month into a central fund to allow unsecured creditors to receive proportional payments against their debts. The individual voluntary agreement will generally last for 5 years and therefore must be a sustainable debt solution, however the repayment programme can be tailored to suit the individual or company entering into the settlement solution and experienced IVA companies like Probitas can provide the best financial IVA advice. Settlement solutions normally also include an element of debt forgiveness, making the IVA an improved debt management solution, and provides an alternative to proceedings for individual, company or business bankruptcy.
The IVA must be approved by a majority of 75% of unsecured creditors who chose to vote on the terms of the settlement solution. If the IVA is approved then all unsecured creditors will be bound whether they agreed to the proposal or not, unlike unregulated debt management products, and prevents such creditors from taking and collection action during the period that the self employed or business IVA is in existence or after its conclusion providing the debtor(s) has complied with his or her obligations under it.
If the IVA solution is successfully completed then any balance due to the unsecured creditors will be written off leaving the debtor(s) with a clean slate and free from some of the restrictions and financial implications of company or business bankruptcy.
Experts in Individual Voluntary Agreements.