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IVA: Individual Voluntary Arrangement
What Is an IVA
The IVA (Individual Voluntary Arrangement) was introduced by The Insolvency Act of 1986 as an alternative to bankruptcy which benefits both the debtor and the creditor. An IVA enables people facing financial difficulties to come to a formal agreement with their creditors rather than having to face bankruptcy.
The IVA represents an exciting new opportunity to those facing serious debt to both avoid bankruptcy and to make a fresh start. In this article, we'll answer the most frequently asked questions about the IVA.
What Are the Advantages of an IVA
- With an IVA you only pay back an agreed percentage of your debts
- While an IVA is in place, it is illegal for your creditors to harass you
- With an IVA, interest on your loan is frozen which means that your debt won't keep growing
- An IVA doesn't affect your professional status or ability to hold public office like bankruptcy does
What Are the Disadvantages of an IVA
- If you don't stick to the terms of your IVA then the insolvency practitioner or your creditors can make you bankrupt.
- If your circumstances alter which means you can no longer afford the payments, your IVA may end if the insolvency practitioner is unable to convince your creditors to accept a new agreement.
How Do I Set Up an IVA
Recommended IVA Body:
Clear Start is an independent free IVA helpline offering IVA help and advice to anyone in the UK.
To contact an IVA adviser click here: IVA ADVICE or telephone freephone 0800 138 5445.
Who Might Benefit From an IVA
An IVA can help anyone experiencing debt problems- particularly those who own property which they would risk losing if they were to be made bankrupt.
An IVA might be a good idea for you if you if:
- You owe money to people or companies that wouldn't agree to an informal debt management arrangement
- You've already tried an informal arrangement, but it's failed.
Can I Get an IVA After I've Been Made Bankrupt
The Enterprise Act of 2004 introduced new rules on how to get an IVA after you are made bankrupt.
This involves applying for what's called a Fast Track IVA by presenting a proposal to the Official Receiver.
If The Official Receiver thinks that your creditors would do better to accept an IVA rather make you bankrupt, he/she might agree to act as supervisor of the IVA. If the IVA is agreed by your creditors, your bankruptcy order will be annulled by the Official Receiver.
Where Will My IVA Details Be Stored
The record of your IVA is kept on a public register and anyone can search to see if someone has an IVA. Records of your IVA are also held credit reference agency files for up to six years.
Details of your IVA will stay on the public register until it is completed. You can search the register by using the contact details below.
The Individual Insolvency Register
The Insolvency Service
5th Floor, West Wing
45-46 Stephenson Street
Birmingham
B2 4UP
Tel: 0121 698 4000
Fax: 0121 698 4406Mike Curry runs a free IVA and consumer debt helpline offering impartial advice to those suffering from serious debt.
In The News:Union Bank completes farm-loan waiver, relief programme
Hindu Business Line, India - Jun 30, 2008
MUMBAI: State-run, Union Bank of India, said on Monday that it has completed the implementation of farm loan debt waiver and relief scheme announced in the ...Himachal government urges to Centre to look into debt relief ...
myHimachal, India - Jul 3, 2008
by MH News Network Prem Kumar Dhumal, the Chief Minister has asked for removal of numerous anomalies in the Agriculture Debt Waiver and Debt Relief ...Central Bank gears up to implement loan waiver scheme
Navhind Times, India - Jul 3, 2008
... machinery for the implementation of Agricultural Debt Waiver and Debt Relief Scheme 2008, in letter and spirit, informs a press release issued here. ...Banks in JK identify 34000 beneficiaries for debt relief
GreaterKashmir.com (press release), India - Jul 3, 2008
Srinagar, July 3: The third meeting of the Steering Committee of SLBC on monitoring progress in implementation of the Agriculture Debt Waiver/ Debt Relief ...Corporation Bank issues certificates under Waiver Scheme
Moneycontrol.com (press release), India - Jul 3, 2008
Corporation Bank has commenced issue of certificates to the farmer beneficiaries of the Agricultural Debt Waiver and Debt Relief Scheme announced by the ...SyndBank to waive Rs 1063 cr farm loan
Business Standard, India - Jul 2, 2008
Syndicate Bank is waiving agriculture debt amounting to Rs 1063 crore as part of the implementation of agricultural debt waiver and debt relief scheme 2008. ...Debt relief Waiving, not drowning
Economist, UK - Jul 3, 2008
In Sikandrabad one farmer could not quite believe that the pink slip he had been given released him from 25000 rupees of debt. But others did not get the ...CARICOM advised on strategy for debt relief requests
Caribbean360.com, Barbados - Jul 4, 2008
They do not have the instruments available to them to give debt-relief to middle-income countries," he said at the 29th Heads of Government Summit in ...Dhumal writes to FinMin for debt relief anomalies
Business Standard, India - Jul 3, 2008
... has sought removal of numerous anomalies in the Union government's debt relief scheme so that majority of farmers of the hill state could be benefitted. ...Syndicate bank extends debt waiver relief to 3.93-lakh farmers
Hindu, India - Jul 2, 2008
The bank said it is confident of completing the total process of handing over debt waiver and debt relief certificates to the eligible farmers latest by ...
Kerala banks display debt waiver lists Business Standard
all 5 news articlesdebt relief - Google News
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