IVA Benefits - IVA UK - IVA Bankruptcy advice

IVA stands for Individual Voluntary Arrangement and the UK specifically to help debtors find their way out of debt. Almost 20 years ago, Insolvency Act of 1986 introduced the IVA. It is a formal, legally binding process that allows a debtor is struggling with unsecured debt to make a payment proposal to its creditors under the guidance of an Insolvency Practitioner (IP).

Why is the IVA Such a popular option in the UK today?

There are various reasons behind the growing popularity of the IVA UK. One of the biggest advantages of IVA is that it helps to write out a significant amount of debt. All high interest rates are frozen and you simply make repayments for 60 months and after that you have debt free (even if you have not paid the full balance). You keep your home, car and you can also try to re-establish your credit rating.

How to organize an IVA?

An IP will review the economic situation and decide on a repayment amount that's right for you. An application will be submitted to the court for an Interim Order for which no creditor may take legal action against you.

For an IVA to be approved creditors meeting will be arranged as you are expected to participate. Your creditors will also be asked to vote for or against the IVA arrangement which is set by the IP. If the creditors vote for the IVA it will be approved immediately. IVA needs support of 75% of the creditors representing the total debt. But if 25% of the creditors vote against the IVA UK meeting will be suspended until a later date. Only qualified professionals can manage an IVA. Off late a number of IVA companies have sprung up online and they claim to provide you with the best IVA-effective package, which is a real alternative to bankruptcy. So you can choose to manage the IVA debt solution through a fast and secure online process.

I've done it to me last IVA Payment, What next?

When you have been given the final IVA payment, IP (which is also the trustee) will issue a "Statement of completion" within 3 months after the last payment of the IVA. You are debt free of charge from now on.

If you are thinking of setting up an IVA, it is important to get the IVA advice and collaborate with professionals who are independent. Signing up for an IVA UK can involve a commitment of up to five years so that it is important to know what you get. Free IVA advice will ensure that you have all the facts in front of you and choose the best solution for your needs.