How does and IVA work?



A meeting of creditors is held where they will vote to accept your proposal. The proposals are accepted if more than 75% of the creditors vote in favour. The creditors can vote either in person by being present at the meeting or by proxy. The arrangement is supervised and the creditors are paid according to the accepted proposals, which are binding on all creditors who were aware of the meeting and were permitted to vote.

What about IVA costs?

Costs are established according to the duration of the voluntary arrangement and also the time and work involved in advising and compiling the IVA. Prior to the meeting of creditors you will be made aware of repayment costs and disbursements according to your individual circumstances.

When is an IVA made?

The cheaper and better option is to make an IVA before bankruptcy but it is possible to make a proposal after.

What about restrictions?

Other than what is acceptable to your creditors there are no restrictions on the maximum or minimum level of debt or level of repayments. It could prove more beneficial for you to make and IVA if you are able to pay regular sums to creditors or you have someone who can contribute or help you to repay your debt.

IVA versus bankruptcy

IVA gives you more control over how your assets are used and how repayments are made. You avoid bankruptcy fees and expenses so the overall costs are less and you also avoid the restrictions applied to bankruptcy.

Can a member of a partnership propose and arrange an IVA?

Yes. An IVA can be proposed on your own but must take into account the claims that the partnership creditors have made against you personally. This will have no affects on the rights of the partnership creditors taking action against the partnership or any partner.

Otherwise partners can propose an IVA involving the partnership creditors and the partners personal creditors either by proposing a partnership voluntary arrangement or by proposing an interlocking voluntary arrangement where each partner will make there own proposal and arrangement for their own debts and also their partners debts.

We can help you make proposals to creditors but to enter into an IVA you must give details of your assets and debts. If you fail to abide by the agreed arrangements the insolvency practitioner or any creditors bound by it will be able to make an appeal for your bankruptcy.