IVA’s what are they?

An IVA is a voluntary arrangement between a person owning debts, but is unable to pay them in full to their creditors. IVA’s, individual voluntary arrangement, is commonly known as an alternative to bankruptcy, because bankruptcy is a drastic step and could have repercussions on you and your family.

The IVA arrangement is still a court based procedure and the court decides on the settlement of debt, whether the creditor approves or not.

Once the court approves the IVA, it is controlled by an insolvency practitioner. The IVA payment will be tailored to your individual circumstances. You are expected to make monthly payments or a lump sum to your creditors. In some cases you may be asked to pay a combination of monthly payments and a lump sum. In some cases if you receive bonuses or do any over time your payments may alter.

You must bear in mind, that any property/properties that you have equity in or any large assets with equity in will be considered by the courts and your creditor. You must speak to your insolvency practitioner about these.

The IVA is a legally binding agreement between you and your creditor/s, and if you were to default on these payments then the insolvency practitioner is able to apply for a bankruptcy order.

There is another alternative, to an IVA, if you do have equity in your home. Some companies offer sell and rent back schemes, enabling you to sell you property for cash, repaying your creditors and remain living in your home. In most cases this can be done within days. Meaning you don’t have to repay a large debt, sometimes IVA’s can take up to 5 years to repay.

Although this may not seem like the best choice for you when you look at it, it is another option there to help. A quick property sale allows you to sell your property quickly, releasing your equity, and repay your outstanding debts.   

Also see:

Advantages of an IVA 
Quick property sale

Contact us or apply online to see how Quick Purchase can help.