{"id":3559,"date":"2014-01-22T15:50:56","date_gmt":"2014-01-22T15:50:56","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=3559"},"modified":"2019-03-11T15:58:36","modified_gmt":"2019-03-11T15:58:36","slug":"what-happens-in-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/what-happens-in-an-iva\/","title":{"rendered":"What happens in an IVA"},"content":{"rendered":"\n

If you\u2019ve decided, with professional advice (e.g. from an Insolvency \nPractitioner) to go for an IVA (Individual Voluntary Arrangement), there\n are a series of things that will happen.<\/p>\n\n\n\n\n\n\n\n

IVA Overview<\/h2>\n\n\n\n

Your Insolvency Practitioner will first need to look through your \nfinances, taking into consideration your current income, expenditure, \nany assets (e.g. house, car etc) and all of your debts. The \neffectiveness of an IVA, as well as the IP\u2019s services in general, really\n depends on them having all of the right information, so it\u2019s really \nimportant that you ensure you give them all of the details you can.<\/p>\n\n\n\n

IVA Proposal<\/h2>\n\n\n\n

Once you\u2019ve provided the relevant information, your IP will then help\n you to work out what you can afford to propose as your IVA payments. An\n IVA basically means offering to pay your creditors a set amount over a \nset period, after which the debts concerned will be considered settled.<\/p>\n\n\n\n

\"IVA<\/figure>\n\n\n\n

Although your creditors will likely receive less than what they would\n if you kept to your original agreements with them, they will also \nlikely receive more if they accept an IVA than if you end up going \nbankrupt. Your IP will be able to draw up a proposal that is likely to \nbe accepted by the creditors, and that is also manageable for you.<\/p>\n\n\n\n

An IVA is only an effective measure if you are able to keep up with \nits requirements, so it\u2019s hugely important that you only commit to \nmaking payments that you can realistically afford for the whole of the \nIVA term.<\/p>\n\n\n\n

Creditors<\/h2>\n\n\n\n

Once you\u2019ve arrived at a proposal, your IP will be able to present it\n to the creditors. You do not need to contact your creditors direct, as \nthis is all handled via the Practitioner, so you don\u2019t need to worry \nabout having to negotiate with your lenders directly.<\/p>\n\n\n\n

The creditors will have a meeting at which they discuss your proposal\n and vote as to whether to accept it. If they do, this means that as \nlong as you meet the IVA payments, they cannot then pursue you for the \ndebts.<\/p>\n\n\n\n

Freeze the debt<\/h2>\n\n\n\n

As well as mediating between you and your creditors, and coming up \nwith a payment plan that suits you, an IVA also effectively freezes your\n debt. We all know how stressful it can feel when your debts are \nspiralling out of control, so an IVA really does make working towards \nthe debt being cleared possible.<\/p>\n\n\n\n

No more Credit<\/h2>\n\n\n\n

Other issues to bear in mind if you go for an IVA, is that you will \nbe unable to get further credit while the IVA term is elapsing. The \nreason for this is that the purpose of the IVA is to get your debts \nsettled in some way, and the only way to do this is to stop acquiring \nfurther lending.<\/p>\n\n\n\n

The future<\/h2>\n\n\n\n

The good news is that once the IVA period is over, you\u2019ll be able to \nstart with a clean slate and work towards a healthy credit rating, as \nwell as solid financial health in general.<\/p>\n","protected":false},"excerpt":{"rendered":"

Once you\u2019ve provided the relevant information, your IP will then help you to work out what you can afford to propose as your IVA payments. <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-3559","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/3559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=3559"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/3559\/revisions"}],"predecessor-version":[{"id":3577,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/3559\/revisions\/3577"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=3559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=3559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=3559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}