Who is eligible for an IVA?

[olivia]

Hello,


I heard about IVAs at the weekend. In truth, it has been an extremely stressful time in facing my debt problem but I do want to delay sorting it out. Can you please tell me who is eligible for an IVA?

Kind regards,

Olivia

[iva_squirrel]

Hi Olivia,

An I.V.A. is an Individual Voluntary Arrangement, it is a legal process introduced in the Insolvency Act 1986. It allows a person having difficulty in re-paying their debts the opportunity to make a formal offer to their creditors, which results in the clearance of the debt over a five-year period.

Practically anyone who is liable for debts in excess of £15,000. Generally an IVA is an arrangement made with an individual.
The purpose of an IVA proposal is to demonstrate to creditors that it would be of greater benefit to them when compared with a bankruptcy order.

If the proposal is accepted it then becomes legally binding on all creditors notified of the proposal.

Once accepted, interest and charges accruing on the outstanding debts are suspended.

Regards,


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[olivia]

Thank you very much for a quick reply. How long does it take to set up an IVA?

Many thanks

Olivia

[iva_squirrel]

Hello,

Once we have obtained all the relevant information we shall prepare an application to the insolvency practitioner. Based upon this information the insolvency practitioner will accept your case as suitable for an IVA and will prepare a draft proposal to creditors.

In normal circumstances, it will take between 6 and 8 weeks to get an I.V.A. agreed.


Regards,


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net