good evening all my little brains ticking away and i wanted to ask a question -hope no-one minds [:)]
what i wanted to query was when i read the newspaper today theres always lots of little adverts for iva's and they all say 'government approved scheme' what exactly does this mean ?
It means that the government brought about IVAs as an alternative to bankruptcy back in 1986, by introducing new legislation. The rules applying to IVAs are set in statute, with the Court Service being the ultimate judge and jury if necessary. It is not perhaps correct to refer to them as "government backed" but a lot of firms use this in their marketing - rightly or wrongly to convince potential clients that IVAs and IPs are reputable.
An IVA is a legally enforceable contract with your creditors and once approved is sacrosanct provided you keep to its terms. The terms can be varied by you/your IP BUT only with agreement of your creditors. Creditors cannot vary or suggest variations direct themselves only if you/IP suggest a variation the creditors can suggest possible modification.
It is not a government backed scheme but is enforceable by statute under the provisions of the 1986 Insolvency Act (as amended).
Last edited by David Mond on Tue Dec 16, 2008 1:52 pm, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
