If you’re no longer able to manage your debts, an IVA or Individual Voluntary Arrangement may well be a good option for you. In order to get one, and indeed to find out whether it is in fact the best option for you, you’ll need professional help and advice.
If you do end up going forward with an IVA, only a licensed Insolvency Practitioner can help you to do this. An IP is a professional and specialist in Insolvency, and can help you to work out what your options are. They will also help you to work out what to propose as part of an IVA. In order to do this you’ll need to provide them with some information.
Information about your situation
Your IP will need to see details of all of your debts, your income and your assets if you have any. Based on this information they will not only advise you in terms of what you should agree to in an IVA, but also in terms of your finances in general, for example in terms of releasing equity, selling assets etc.
Accepting the IVA Agreement
Once your IP has an overview of your financial situation, you will be able to work out what arrangement would be best. They will then present your IVA to the creditors through the court. The creditors will then have a meeting at which they discuss whether your proposal is acceptable to them. There isn’t much you can do to influence this, as it is basically up to them to decide whether to accept the agreement.
If the creditors do accept the arrangement, they and you are then legally bound to it. You will have to make whatever payments are agreed to in the IVA for the full term outlined, so you need to make sure that you are in fact going to be able to do this.
The process of proposing and setting up an IVA typically takes a few weeks, but the first step is to speak to an IP and get the right advice as to how to move forward. With the right arrangement, you should be getting your finances under control in no time.