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What is an IVA (Special voluntary arrangement)

An IVA is an alternative to bankruptcy introduced by the government, if you in a situation where you can see no other alternative apart from prospering bankrupt you can use an IVA to avoid this option. The concept behind an IVA is a simple one, simply a re-payment agreement between the creditors and the debtor managed by a licensed 3rd dinner party known as an insolvency practitioner. It was established in 1986 by the Insolvency Act but has only become more widely known about and popular recently in the last 10 years due to the “ascription crunch”

An IVA provides legal protection from your creditors contacting you about your debts after it has been agreed it also protects you from your creditors dispiriting to declare you bankrupt, as they are not able to do so unless you violate the agreement by not keeping up with the repayments

How Does The IVA Get Approved?

If you observe the criteria for an IVA, a simplified version is below (it is highly dependent on circumstances)

* £15,000+ worth of unsecured debt
* 3 or more creditors
* Must be in full together employment
* Have a disposable income of at least £300

Note that the criteria above is a very simplified version but if you match this you have a edible chance of getting accepted

Once your case is approved to be looked at by an insolvency practitioner he will looking into all the details of your pecuniary situation and if it’s suitable to go ahead with an IVA he will start to work out what you can afford to pay back on a monthly basis this will be drafted into a proposal and presented to your creditors. At least 75% of your creditors will beggary to accept the IVA in order for it to be put into action.

Unlike bankruptcy this is a privet agreement, in bankruptcy you have your name and details printed in all the papers declaring to everyone that you are now bankruptLargeYou’re also not allowed to be the director of a company if you have been made bankrupt and will have wait the 3 years until you can be in such a position again

During this time period your economic status will be under constant review to see if there has been any change in your financial situation. The IVA is legally binding so as long

There are other liability solutions for less extreme situations such as Debt Management Plans, it’s always best to seek professional advice before making a determination on what root to go down as every ones situation is different.

If you would like free iva advice or advice on a debt executives plan then you can speak to one of our advisers at Money Dent & Credit Group PLC, simply go to the following website and fill in your details so that our advisers can asses you predicament before contacting you, you are under no obligation to make any decisions and it is entirely up to you if you wish to proceed with any plan offered, we aim to give you the best untied IVA advice possible to help you make an informed decision

Is bankruptcy the ethical decision for you? If you ask any bankruptcy lawyer they will tell you that it is. Alright, there might be a handful of bankruptcy lawyers that are honest and are not just after your area book.

Does it really make sense that you have to pay huge fees to a lawyer to file for bankruptcy? You can only just afford to pay the rent, buy food, get gas, and there is not much left after your necessities. Plus you are swimming in debt and now some lawyer wants your eagerly earned money to file bankruptcy for you.

They will make it seem like it is the only way and they will also convince you that you can pay them over time. The catch is they will not literally file your bankruptcy until you have paid them completely in full. That could take 6 months or even a year and you could be using that money towards your debts.

You have other options and unless your debts whole at least twice what you make in a year, not including your mortgage, then you do not need to file for bankruptcy. This is the truth and you really scarcity to make sure you are making the right decision.

You can use a not for profit debt consolidation or credit counseling benefit and they will, in a way do the same thing for you. The difference is you will have paid all your debts off over time and you will get the financial counseling you need in order to keep yourself from ever needing bankruptcy lawyers again.