Here is a short guide to understanding what is an IVA (Individual Voluntary Arrangement).
What is an IVA?
An IVA is an Individual Voluntary Arrangement whereby an individual or individuals can enter into the arrangement with their unsecured creditors. It's a legally binding agreement, and it gives them the protection from the creditors from taking any further action against them, such as securing charges on the property, bankruptcy proceedings, statutory demands, etc.
If I enter into an Individual Voluntary Arrangement, do I have to repay the creditors in full?
No. The term of the IVA and the repayment is totally dependent upon your circumstances, hence, it is an Individual Voluntary Arrangement. Some arrangements are set up to repay creditors in full, allowing you the time to do that and stay in action from creditors, or it's to pay a percentage in the pound. Again, dependent upon your individual circumstances.
In an Individual Voluntary Arrangement, could I lose my home?
Not necessarily. Again, we would review your financial situation. In most cases, you are able to retain some, if not all of the equity in your property.
How long does an Individual Voluntary Arrangement take?
Usually, on a contribution-based Individual Voluntary Arrangement, it can take five years. But again, it is dependent upon your individual circumstances, and if a lump sum is to be introduced, then the arrangement could last between six and twelve months. It is, again, dependent upon your individual circumstances.
You can watch our video on Individual Voluntary Arrangements (IVAs) FAQs - Part 1 along with many other Individual Voluntary Arrangement videos on our YouTube channel.
If you still need help understanding what is an IVA then please contact Tim, Cheryl or Janet at Griffin & King Insolvency Practitioners today on 01922 722205.