IVA advice from Hamilton Associates

What is an IVA?

An IVA is a formal arrangement made between a debtor and his creditors about how the debts will be paid (either in full or in part).  To enter into an IVA you have to involve an insolvency practitioner who supervises the arrangement.  An iva is an alternative to bankruptcy.  

The insolvency practitioner will help you to put down your proposals to your unsecured creditors. If 75% by value of debt of your credits who are represented at the meeting in person or by proxy vote in favour of the proposals the IVA will be implemented.  Once the proposal is approved it is then binding on all creditors.  Whilst an IVA is in force, unsecured creditors cannot take any debt recovery action against you. 

At the end of your IVA typically the fifth year you may be required to release equity in your property to repay some or all of your outstanding debt.

How much debt do I have to have to qualify?

You should have debts of over £15,000 and be able to pay at least £200 plus per month after all your usual monthly expenditure.
There are many company’s advising IVA but not fully explaining the consequences of a failed IVA plan and also setting up unrealistic payment proposal that then have drastic implications.