Legally binding protection
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your unsecured creditors. Creditors bound by the IVA cannot take action against you provided that you keep to the terms of the IVA. If there is ever a problem making a payment or anything else which may affect your arrangement, always contact your case administrator, they are there to help you and make your arrangement work.
Shawcross Williams will assess what you can afford to pay to your creditors and this is what we ask your creditors to agree to. This ensures that your repayments are manageable and is based on certain criteria generally accepted by the industry and creditors voting on your proposal.
Interest and charges frozen
When your IVA is accepted your creditors cannot add any further interest and charges onto your debts and provided that you stick to the terms of the IVA any balance owed after your IVA has completed is written off.
It is important that you consider the features and benefits of an IVA. To understand if it’s the right option for you, here is some key information to help.
Once your IVA has been accepted, you could benefit from:
Things to consider
Insolvency Practitioners are highly regulated and have to demonstrate a wide range of experience before becoming an Insolvency Practitioner.
An IVA proposal ideally has to show your creditors that the amount that they will get back from the IVA is more than if you became bankrupt.
If you are a homeowner and became bankrupt then you would have to buy back the value of your share of the equity in the property, failing which the property could be repossessed.
For this reason it is vital that the IVA proposal takes into consideration your equity in the property but there is now an agreed set of rules that: –
The safeguards that are there to protect you are:
IVA’s were originally introduced to help the self-employed business person avoid bankruptcy and continue trading and so they are an ideal debt solution for the self-employed.
Because of the varied nature of businesses, however, care has to be taken in the manner in which the IVA is set up and so it is essential to take the early advice of an insolvency practitioner who is the only type of adviser who is likely to have the knowledge and experience to be able to properly advise you.
The production of realistic trading forecasts on which your self-employed earnings can be based is therefore very important and the general basis of the income to be used in the proposal but we can work with you on this.
We will discuss and work with you on all of the above to ensure that you choose the best solution to fit your individual needs as we recognise that every case is different.