IVA
OVERVIEW
An IVA is a confidential formal payment plan and a confident arrangement between you
and your creditors that is covered by insolvency laws.
It is a legally binding agreement that will protect you from your creditors while you pay
them at a rate you can afford, for a period of normally just 60 months.
The amazing thing about doing an IVA is that any debt left outstanding after the 60
month period is legally written off by your creditors as long as you have kept to the
payment plan.
Your IVA proposals are put forward to creditors in a document called proposals. The
proposals are lodged into Court and your creditors also receive a copy. If your assets
are at risk because of action taken by creditors, your arrangement provider can apply
to court for an Interim Order, which means that creditors cannot commence or
continue with any action against you and your assets unless the Court permits them to
do so.
A meeting of your creditors is held and creditors are able to vote on whether to accept,
alter or reject your proposals. As long as your proposals demonstrate a genuine desire
to repay as much of your debt as you can afford, it is likely that creditors will accept
your IVA. It is your arrangements providers' role to guide you on what creditors will
find acceptable.
Once your IVA is approved all interest and charges on your unsecured debt is frozen. If
creditors accept that you can only repay a proportion of your debt, the balance of your
debt will be written off as long as you keep to the terms of your agreement.
To find the best solution for you Contact Simply Debt Solutions or Send Your Details to
The Debt Advisor today.
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