10th September 2014
This is for general guidance purposes – please seek independent professional advice if you are considering an IVA.
In an IVA, the debtor approaches a licensed Insolvency Practitioner (IP) to propose an IVA. The IP will then draw up a proposal for the unsecured creditors (such as credit cards, personal loans and overdrafts etc) and present it at a pre-arranged creditors meeting. The creditors then have to vote in favour (75% by value of the debt) for the IVA to go ahead. The debtor then makes the agreed monthly payments to the IP and at the end of the term (usually 5 years), the outstanding balance is written off.
The advantages and disadvantages of a “full term” IVA:
The advantages and disadvantages of a “full and final” IVA:
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.