Individual Voluntary Arrangement
An Individual Voluntary Arrangement (“IVA”) is a process whereby an Insolvency Practitioner is firstly appointed by an individual as a ‘Nominee’ to assist in providing a proposal to your creditors to compromise their claims whereby bankruptcy can be avoided in a controlled manner with a better financial outcome for all parties.
Your Nominee will assist you in the preparation of a proposal, estimated outcome statement, relevant filing requirements (if necessary) and the convening of a decision procedure by which your proposal is to be considered by your creditors. Following approval of a proposal, an Insolvency Practitioner is appointed as a ‘Supervisor’ of that Arrangement in order to ensure that you meet the relevant terms of the same.
An IVA can be utilised by individuals who have considerable personal debts, liabilities relating to personal guarantees or to businesses, including unincorporated partnerships, which are not incorporated as a limited company. You provide funds into the arrangement for a number of years out of your income and/or from the sale of any surplus assets and sometimes a third party, such as a relative, may be willing and able to contribute a lump sum into the arrangement to increase the potential return to creditors.
An IVA is a very flexible procedure, which enables individuals to propose a full and final settlement with their creditors. An IVA is used to provide a better return to creditors than if an individual was adjudged bankrupt.
This is only a very brief introduction to the procedure and great care is required to ensure that an IVA is appropriate for you. The team at Live Recoveries has the relevant experience in order to guide individuals as to the process of an IVA and to consider whether an IVA is an appropriate solution; there are potential pitfalls as well as potential benefits and these will need careful explanation.
Face to face interviews are essential in order that a full understanding of your position can be obtained. Our team understand that this can be a stressful time for you and can provide the relevant support and information in order to put you at ease.