IVAs (Individual Voluntary Arrangement) are a debt solution available to those with personal debt, as well as sole practitioners needing debt management solutions.
An IVA is an agreement with creditors to enable debts to be paid at a manageable level. An IVA is an option available in cases where there are:
IVAs are legally binding and a licensed insolvency practitioner will oversee the legal process and make sure the payments agreed are made.
Failing to pay the agreed amounts under the IVA means it could be cancelled and the insolvency practitioner can make bankrupt an individual who does not keep up IVA repayments.
An IVA is also recorded on the Individual Insolvency Register, but the record will be removed three months after the IVA ends.
One advantage of an IVA is that bankruptcy or insolvency proceedings can be avoided if the agreed repayment is made every month – and it is still possible for sole practitioners to carry on trading.
There are costs attached to setting up an IVA – including a set up fee and a handling fee each time a payment is made.
Duncan Lewis debt management solicitors can advise on setting up an IVA and other debt solutions to avoid insolvency proceedings or bankruptcy.
For expert legal advice on IVAs and debt solutions, call Duncan Lewis Debt Management Solicitors on 0333 772 0409.