An IVA is a legal agreement with creditors to pay back part of the debt in full settlement. Only a Licensed Insolvency Practitioner can implement an IVA.

Your IVA agreement or “Proposal” describes your circumstances and finances. It explains how much can be paid over a period, usually a maximum of 5 years. Your creditors are sent the IVA Proposal and if 75% in value of unsecured creditors who take part vote in favour then all creditors are bound by the IVA. The rights of secured creditors e.g. your mortgage provider cannot be changed.

An IVA is often suitable for larger borrowing, say £15,000 plus, as a fixed timescale is agreed and you know exactly where you stand with creditors.  An IVA can provide for protection of certain assets e.g. the home.  Between 25% and 75% of the total debt is usually written off through an IVA.

We can introduce clients to a local Insolvency Practitioner.

Bankruptcy

Bankruptcy can be the option for some people if you cannot afford or face other arrangements. Your unsecured debts will be wiped off and you are given the chance to have a fresh start free of debt after one year although you might have to make payments from your income for a further two years. If you are made bankrupt anything you own with the exception of household furniture, personal possessions and, if applicable, tools of trade is transferred to the Trustee.