Individual Voluntary Arrangement Help
(Call 0800 138 2299)
* Do you have unsecured debts of £15000 or more?* Do you have 3 or more creditors?
* Are you struggling to make ends meet but could afford a minimum payment of £200 per month?
If you can answer YES to any of the above, Chase Saunders will be able to help to put your debts together into one manageable monthly payment and the option of an Individual Voluntary Arrangement (IVA) may be a possible route to clear your debts.
What exactly is an Individual Voluntary Arrangement (IVA) and what does it involve?
An individual Voluntary (IVA) is a formal and legally binding agreement between you and your creditors.
A proposal is put to your creditors on your behalf, which states that you are able to maintain a monthly payment (without fail) to a suitable level, which will guarantee the creditor a substantially higher payment than they could expect to receive from a bankruptcy.
(Should you default during this period the creditors reserve the right to bankrupt you)
A minimum of 75% of creditors must agree to the proposals at a creditor meeting, and once the agreement is approved, all of the creditors are bound by its terms under the Insolvency Act 1986.
Provided you stick to your agreement the creditors agree to:
* Freeze interest and charges.
* Stop contacting you for payments.
* Will right off any outstanding balance that you owe after your 60 monthly payments have been made.
How are the monthly payments calculated?
We will complete a thorough Financial Statement where we can calculate exactly how much you can afford to pay after you have accounted for your basic living costs and those of your dependents. The amount should be the most that you can afford whilst at the same time not so much that you are bound to fail in making your payments.
How will the monthly Individual Voluntary Arrangement (IVA) payments be made?
A standing order will be set up from your bank account to an account held by your IVA supervisor that will be used to collect and monitor your payments.
Must I include all of my creditors?
You should not exclude any of your creditors from your arrangement for a number of reasons. Firstly, you are obliged to notify all creditors of your IVA proposals. All creditors notified are entitled to vote. Therefore if they believe that you are prepared to pay back others but not them, they may be inclined to take action against you.
Can the creditors change their minds/the terms of the Individual Voluntary Arrangement (IVA) once it has been agreed?
No. Once the agreement has been made the creditors are bound by the terms and as long as you maintain your obligations they are not able to take further action against you or demand a higher repayment.
What if my creditors do not accept my proposals?
If the Individual Voluntary Arrangement (IVA) does not go ahead they remain free to take any action they wish against you (and are entitled to do so). This could result in bankruptcy proceedings being started against you. But we would advise that rather than take this route our Debt Management Programme would make your debts affordable but without the agreement to be clear of debt in 5 years.
What if some of the creditors accept and some don't?
A minimum of 75% of your creditors (in value) must agree to your proposals for the agreement to be accepted. So one large creditor with 75% of your outstanding debt would be sufficient to carry the vote, creditors not turning up for the creditor meeting their vote will go in your favour.
When is the best time to do an Individual Voluntary Arrangement (IVA)?
As soon as possible, for a number of reasons:
If an Individual Voluntary Arrangement (IVA) can be put into place before your debts get any higher, you would maximise they amount paid to your creditors. The creditors would see this as a way of getting back a higher dividend than they would via bankruptcy.
Creditors want to see that you are making every effort to tackle your problems, and that they have not been strung along for as long as possible and this now your only option, and because of this the creditors are more likely to accept the arrangement.
Why an Individual Voluntary Arrangement (IVA) that could take me 5 years to clear my debt when I hear that a bankruptcy order now only lasts 1 year?
The fees are often less to implement than bankruptcy proceedings.
There are no restrictions placed on your actions, unlike bankruptcy e.g. Future credit, bank accounts, and employment issues.
You retain, ownership and control of your own property.
Quicker to implement - the sale of assets is often not required, unless you have a Picasso in the loft!
Individual Voluntary Arrangement (IVA) is not advertised publicly unlike bankruptcy.
If self-employed.
Slightly more difficult to organise, and will require more work from your IP.
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