An IVA is a formal arrangement between you and your creditors.
Once approved it is legally binding on your creditors; your creditors will not be able to continue to levy interest and charges against you; your creditors will not be able to change their minds.
IVA’s are often a viable alternative for those wishing to avoid Bankruptcy; this could be because of your employment status or protection of your family home.
An IVA is a contractual arrangement with your creditors and is tailored to your particular circumstances. The payments in an IVA can be made from any of the following; income, capital, third party contributions or a combination.
It is generally more appropriate for people who cannot make their monthly credit commitments in full each month, but do have some disposable income to pay to their creditors.
If creditor’s agree to your IVA, some of your debt may be written off upon the successful completion of the IVA. The amount written off is wholly dependant upon your personal circumstances.
An IVA can give you more say as to how your assets are dealt with and how payments are made to your creditors.
How long does an IVA last?
This will depend upon your personal circumstances, but most standard IVA’s are based on monthly payments being made for 5 years; but if you own your home this may be extended to 6 years to ensure that you do not lose your home.
When will an IVA end?
Generally, when all sums due under the agreed IVA have been paid.
The Association of Business Recovery Professionals, R3, have produced a guide in respect of IVA’s.
At Beacon we are experts at proposing IVA’s to creditors to ensure that they are they are the best option for both you and your creditors.
To find out if an IVA would be right for you, contact our experts for confidential advice.
