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IVA Information

An IVA is an Individual Voluntary Arrangement, often a method that is preferable in many ways to the traditional route of Bankruptcy. They are only available to individuals and not organisations. An Individual Voluntary Arrangement is a formal agreement proposed to the unsecured creditors (those people that are owed money) on behalf of the debtor.

They can only be administered by Insolvency Practitioners (IPs) who are qualified and regulated by a number of official professional bodies including the different Law Societies of the UK and the Institute of Chartered Accountants.

An IVA is a personal contractual agreement made by an individual; as such it can be tailored to the particular circumstances of the debtor and the unsecured creditors. Individual Voluntary Arrangements are finally agreed at a meeting between the unsecured reditors.

At a vote between those unsecured creditors, 75% percent of them (in value) must agree on the arrangement. At present people across England, Wales and Northern Ireland are visiting debt management specialists to arrange Individual Voluntary Arrangements, rather than bankruptcy. (Please note an IVA is not available to residents of the Isle of Mann).

One of the benefits of an Individual Voluntary Arrangement (IVA) is that one of your primary assets, your house is not sold to pay back your creditors. Some of the equity in your home may need to be released but you are able to keep your home. This is obviously beneficial to those people with families who wish to resolve mounting debt pressures effectively without resulting to the extreme solutions such as bankruptcy.

One of the disadvantages of an Individual Voluntary Arrangement is that you have to keep making repayments which are based on your financial circumstances. The debts are not discharged until you have repaid the agreed portion of the debt back to the unsecured creditor(s). Payments are usually made over a five year term (60 months).

If you have already filed for Bankruptcy, a Fast Track Voluntary Arrangement can be implemented by the Official Receiver, who acts on behalf of the debtor in the arrangement of the proposal, and communicates and corresponds directly with the creditors in all aspects of the arrangement.

If you would be interested in enquiring about an Individual Voluntary Arrangement (IVA) or would like to talk about any other financial options, call FREE on 0808 22 22 123 or alternatively you can request a callback on the contact page.

We offer impartial advice and will make you aware of all applicable financial solutions based on your individual financial circumstances. We will also make you fully aware of the potential costs, implications, advantages and disadvantages involved in any proposed financial solution.

All IVA's offered by 123 Debt Solutions Ltd will be administered by Pareto Money Management Ltd or a trusted third party.

Pareto Money Management Ltd is authorised by the Insolvency Practitioners Association and is a member of the Association of Business Recovery Professionals, known as R3.