Brass Domain

An might assist anyone who is experiencing problems repaying their debt. It is an singularly appealing offer to homeowners who are at risk of losing their house if they were made bankrupt.

An IVA could help if;
Your lenders have already refused to accept an informal debt management arrangement
You formerly had an informal arrangement, but you could not keep up with its provisions.

You are in debt to so many creditors that an informal debt management arrangement would not be practical. You are being made bankrupt, alternatively you have already become bankrupt and you want to reverse that position. You previously had an informal arrangement, but you could not adhere toits provisions.

Your creditors have not agreed to an informal debt management arrangement
You you are in danger of being made bankrupt, or you are currently bankrupt and you want to alter that situation.

You are in debt to so many creditors that an informal Debt Advice agreement would be impractical.

You may have a small business which you could not keep operating if you became bankrupt. You would be made redundant if you are made bankrupt, jobs such as solicitor, accountant, the armed forces, police. You have access to a significant amount of money but it is still insufficient to fully repay your creditors. You want a formal arrangement with your lenders to accept that lump sum and write off the balance of what you owe.

You have equity in your house. You will not necessarily lose your house if, with the agreement of the IP and your creditors, it can be kept out of the IVA or Individual Voluntary Agreement. However, your creditors will normally want as much of the equity in your home as they can acquire. With an IVA you are not as hampered restricted than with bankruptcy. EG, with an IVA you don’t have to notify your bank. Therefore, you will still be able to use your bank account.

The Disadvantages of an IVA
If you are unable to comply to the conditions of your IVA, then the Insolvency Practitioner who is supervising your IVA or Individual Voluntary Agreement or your creditors, can petition for your bankruptcy.

If the vast majority of your lenders refuse to agree to your proposed Individual Voluntary Agreement (IVA) you are effectively back to where you started. It will be twelve months before you can make another IVA proposal. You need to get it right.
If you are a property holder, it could be that under the terms of the IVA or Individual Voluntary Agreement you have to sell your house. An alternate approach is to include a clause in your IVA whereby you have your home valued after an prearranged amount of time with the aim of releasing the “equity” in your property at that time, to your lenders. Your creditors may agree to you paying monthly IVA instalments for an additional year to cover the amount of equity in your home.

If your money situation alters and you are unable to afford the payments, unless your Insolvency Practitioner can coerceyour lenders to agree to a revised arrangement, your IVA will terminate. This will mean you are facing bankruptcy.

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