An Individual Voluntary Arrangement is an arrangement through the county court and the debtor to pay off outstanding debts over a short period of time. An IVA typically lasts for five years in most cases. The short-term deals require high monthly payments while the rest of the debts are forgiven.
Some IVA 's offer a larger sum to creditors than the monthly installments, while the remainder is set aside. There are a few situations where both monthly and a lump sum is required. If you want to get more information about the debt management services then you can visit at ukfinancehelp.co.uk/
An insolvency practitioner, or an IP, must be consulted to initiate an individual voluntary agreement. After an IVA has been agreed between the IP (insolvency practitioner) and the debtor, an IP can apply to the county courts for an interim order. This order stops creditors from starting bankruptcy procedures against an individual without consent from the court.
The IP sends the IVA's to all creditors and organizes a "creditors meeting". The creditors are given 14 days notice to cancel their attendance at the meeting. To enforce the IVA , the creditors must reach a 75% agreement. This is a lengthy process that can be time-consuming, but it may prove to be worthwhile for some.