definition of an IVA?

[louisaL]

I just asked a friend what she thought was an IVA and she said it was basically declaring yourself bankrupt!

is she right??

[iva experts]

Hi Louisa and Welcome!

Your friend is incorrect, going through an IVA is not declaring yourself bankrupt but declaring yourself insolvent.

When you are insolvent this means you can no longer afford to pay back your creditors through the contractual monthly payments or with any assets that you may have (house,car etc).

What is your amount of debt? Who are your creditors? What amount of monthly disposable income do you have (income minus living expenses)?

Best Regards. IVA Experts

[Oliver]

No an IVA is the legal alternative to Bankruptcy. An IVA or Individual Voluntary Arrangement is a legally binding agreement with Creditors. It allows someone who is in financial difficulty to make a formal proposal to settle his/her debts within a reasonable and fixed period of time - normally 5 years. The repayment proposal is based on what you can afford to pay. After the agreed payment period, any outstanding debt will be legally written off by your creditors.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva_squirrel]

Good morning,

Depending on your circumstances, an IVA can offer several advantages over either informal debt management or bankruptcy. In fact the government introduced IVAs as part of the 1986 Insolvency Act to provide an alternative to bankruptcy and to offer protection under the law to people in serious debt.


Kind regards,

Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

Credit Today Awards 2007 http://www.credittoday.co.uk/awards/winners.htm