Individual Voluntary Arrangement

What is an IVA?

An Individual Voluntary Arrangement was brought in by the government and forms part of the 1986 insolvency act. It is for people who can no longer afford to pay their creditors in full but can afford to make a reasonable offer.

The main benefits of an IVA are:

* It normally lasts for only 60 months
* One affordable monthly payment
* Creditors cannot demand money by phone or mail
* All interest and charges are stopped
* What you cannot  afford to pay is written off

An IVA has helped thousands of people become debt free, so if you have over £15000 worth of unsecured debt and can make a minimum contribution of £160 a month over a five year period then contact Assured Money Solutions on 0800 612 2472 for free no obligation advice or simply fill in the form on the right.

We thought it would be really helpful for our clients to look at our Q & A and look at the major benefits.

At AMS we  CAN help you to reduce your monthly re-payments today.  An IVA is one of the ways.

With an IVA you can reduce your monthly repayments by up to 80% and have some of the debt written off.

IVA FAQ

ask-any-question-with-regard-to-Iva's-to-the-AMS-Debt-Dr-team

An IVA (Individual Voluntary Arrangement) is a legal solution that protects you from creditor legal action. An IVA is part of the government Insolvency Act of 1986. If you have over £15,001 of un-secured debts & owe to 3 or more creditors an IVA may be the solution for you.

In our experience, it is possible to write off up to 70% of debt with an IVA (Individual Voluntary Arrangement)

Some IVA’s are set up on the basis of using a lump sum to make offers to the creditors rather than making monthly payments. This will usually mean raising a lump sum on any assets. Some IVA’s are a mixture of both a monthly payment offer and a lump sum. We will assess your case and recommend the best option in your exact case.

An IVA is setup and managed by our team of Insolvency Practitioners. We use the UK’s finest the Spencer Hayes group, A team you can rely on for absolute expert advice. Call AMS for free advice and assessment of your debts. If an IVA is the best debt solution we will prepare your case and appoint one of our Insolvency Practitioners to act on your behalf.

Usually an IVA can be set up in six to eight weeks. Our Insolvency Practitioner will draft a proposal to your creditors and invites them to a Creditors Meeting. At this meeting the Insolvency Practitioner will negotiate on your behalf with your creditors, they will vote on whether to accept or reject the IVA proposal.

Often creditors send in their vote and don’t actually come to the meeting, but it is vital that all your creditors are contacted. If they have no notice of the meeting they do not have to be bound by the terms of the IVA and can pursue you for their debt separately.

If 75% of your creditors ‘by value’ who actually vote agree to the IVA, then the rest are bound by the IVA, even if they voted against it or did not vote at all. ‘By value’ means the creditors to whom you owe 75% worth of debt, not the number of creditors you have.

Once the IVA is agreed our Insolvency Practitioner will supervise the arrangement and make sure that thing run smoothly. However we will also take an interest in the case and We will keep you up to date at all times on the progress of your IVA. An IVA can help you avoid bankruptcy and the public process that is, but you need to keep making the payments that have been agreed. It is therefore very important that we know the true extent of your debts – we need you to be completely honest with us about your financial circumstances, that way we can do our best for you and get the right settlement for you, this is vital.

Once the Insolvency Practitioner has prepared your proposal, an application can be made to the county court for an Interim Order. This stops your creditors from starting bankruptcy proceedings against you. It also stops any other enforcement action without the court’s permission whilst the Interim Order is in force. This can be done within one week.

If you do not keep up payments for the entire arrangement you will most likely be made bankrupt.

If you do not keep up with contractual loan or debt repayments your credit rating will be effected.

If you are a homeowner you may have to re-mortgage your property.

It could be that your personal situation is much better suited by going into a debt management plan and if this is the case we will advise accordingly.

For preparing your case for submission with all of the relevant detailed financial and personal information we charge a upfront fee based on a provisional monthly payment into the IVA X 2 payments, payable within 60 days.However if the IVA is not accepted at the creditors meeting our fee is returned in full. On top of this will be the fees of the Insolvency Practitioners and ongoing administration fees. However remember these on-going administration fees are not paid on top by you, they are taken from the monthly payment into your IVA arrangement. In short, the creditors agree that they will accept a lower return from the arrangement. Once the IVA is set at the amount it is deemed you can afford to pay back, this is exactly what you pay back from the arrangement for typically the 60 months you are in the IVA.