iva

[jimmyninja]

does anyone know how an IVA works ( individual voluntary arrangement & whats the risks.

[kempie]

An overview here...

http://money.guardian.co.uk/creditanddebt/debt /story/0,,1837375,00.html

[myvesta-sean]

Hi Jimmyninja,
An IVA stands for Individual Voluntary Arrangement and it is essentially a formal alternative to bankruptcy.

IVAs are a mechanism wherby a person aims to reach a formal agreement with their creditors to repay a portion of what is owed (typically over a 5 year period) as oppose to petitioning for bankruptcy.

Creditors, in most cases, would much rather see an IVA proposal as oppose to a bankruptcy petition as they are likely to recieve a much greater portion of what is owed.

The IVA Video Information Clips on the Myvesta site may be of further assistance to you.

http://myvesta.org.uk/media/video/iva/

[CrazyDaisy80]

Following on from the Post from myvesta, it will depend what Company you owe Money to and how much as to whether they will enter into an IVA. You do need to check with your Creditor.

It is better than going Bankrupt though which will stay with you for Life no matter what anyone says.

CrazyDaisy80
XxX

[what..the?]

25 pence in the pound is the norm for an IVA any less than that is the propsal will be rejected by your creditors.

So for every pound you owe in total to you creditors if you offer then 25 pence in the pound back that is standard.

With every exceptance there could be modifications, i.e a creditor can agree to say 25pence in the pound but want you to sell your car and purchase a cheaper car or if your income increases they may wish for the payments to increase.

These modications have to be stated at the time of voting before the creditors meeting after which time the creditors ( if the IVA is excepted) are tied into the legal agreement.

Part of the agreement is of course to make regular payments the proposal states that if you do not make payment for the certain number of weeks you will could made bankrupt. I should not worry about this though as you should be in constant contact with your Insolvency Practitioner during the time of your IVA and he will keep tags on you to stop this happening.

By the way only use a Licensed Insolvency Practitioner and I cannot stress Licensed enough. This will mean you are looked after properly as these people are constantly regulated, therefore you will be doing an IVA if if is suitable for you and you can afford the amount proposed - they will give you the advice you need and will not rob you.

Info on bankruptcy on the 'Insolvency Service' website.