Personal Insolvency
Individual Voluntary Arrangement - IVA
or a Partnership Voluntary Arrangement - PVA
Our business is the provision of Individual Voluntary Arrangement services for people who are able to strike a fair deal with their creditors. We know our business - let us help you.
Entering into an Individual Voluntary Arrangement (which has to be approved by ‘a majority in excess of 75%’ of your creditors who choose to vote) gives you a chance to pay what you can genuinely afford every month, usually over a five year period, although this will depend on your circumstances. You will have to offer up any equity you can afford to release, too. In return for you making fair payments for five years, interest is frozen and the balance of money you owe to your creditors is written off. You do not have to repay your debts in full - you pay what you can genuinely afford. The letters, phone calls, court action and bailiff visits cease. After five years, you are debt free and can rebuild your life. Our fees come from the monthly payments you make - you do not receive a separate bill from us.
Creditors expect to see at least £300 a month in contributions and a dividend of at least 40 pence in the Pound.
An IVA can be based on a ‘lump sum’ rather than ongoing contributions. You may be able to remortgage and release equity from your property, which you can apply to pay off all of your creditors. An IVA can give you leverage - the ability to pay off more in creditor liabilities than you can raise by equity release. Alternatively, an IVA can give you protection from your creditors while you complete a release of equity.
An Individual Voluntary Arrangement is usually a better solution than struggling on without support. It takes away creditor pressure and gives you both peace of mind and certainty - you know what needs to be paid and when. Your creditors are legally bound and cannot change their minds .. even any creditors who voted against the proposal. The Individual Voluntary Arrangement is flexible and the terms can be changed, with the agreement of your creditors; you may wish to bring the Individual Voluntary Arrangement to an early end or need a ‘payment holiday’.
It’s not an easy option. Five years is a long time. We will chase you for any payments you miss and is you fail to comply with the terms of the arrangement we will terminate the Individual Voluntary Arrangement and may petition for your bankruptcy.
Remember that an Individual Voluntary Arrangement is not an easy solution to your debt problems - bankruptcy allows you to walk away. But it’s the ethical solution - you pay what you can afford and your creditors will forgive part of your debt.