IVA - How it can help you?
WHAT IS AN IVA (Individual Voluntary Arrangement)?An Individual Voluntary Arrangement (IVA) is an alternative to bankruptcy. Basically, it is a contract between you and your creditors. The terms of your proposal to creditors may be very flexible, but creditors will reasonably expect their prospects of recovering money to be at least as good as in a bankruptcy. Further, they will expect the proposal to contain sanctions (such as a right to bankrupt you) if you do not fulfil your part of the bargain.An Insolvency Practitioner (IP) can help you with your proposal to creditors and, initially, he is known as your "nominee". If creditors accept your proposal, the IP then becomes the "supervisor" of the arrangement. If over 75% by value of your creditors who are represented at the meeting (in person or by proxy) vote in favour, the IVA will be implemented. Although there is no legal requirement that you attend the creditors' meeting, in practice you should be there. Otherwise it will be impossible to agree any changes to the proposal. If creditors propose last minute changes, you can ask for a reasonable opportunity to think about them. If necessary, seek private advice from your IP outside the meeting as to what is being proposed. An IVA gives you an opportunity to avoid bankruptcy. If it is not approved, in practice you cannot legally put forward another IVA for 12 months. In that time, a creditor may bankrupt you. It follows that you should put forward the best offer you can to creditors. Be completely open and honest with your IP and with the creditors about your financial circumstances. The IP's role changes as the case progresses. Before you have committed yourself to anything, he is your professional adviser, with responsibilities only to you. More information can be found on the following pages: student loan consolidation personal bankruptcy debt consolidation loans debt settlement debt management debt advice insolvency practitioner links site map contacts Here are some useful links to other IVA companies IVA solutions - Google IVA solutions - Yahoo IVA solutions - DMOZ IVA in Sweden IVA solutions - Lycos |
