An Individual Voluntary Arrangement (IVA) is a debt solution which involves yourself and your creditors coming to a legally binding agreement to extend your loan term and make reduced monthly repayments over this new timeframe.
In order for an IVA to be officially instigated, you will need to acquire the services of an insolvency practitioner, who typically work in jobs within the legal or accounting sector.
The following guide will detail to you how you can find the right insolvency practitioner for your circumstances.
Is an Individual Voluntary Arrangement the best solution for me?
Prior to pursuing an IVA as your chosen debt solution, you should ascertain whether it is the right measure to remedy your unique financial difficulties. Whether it is ideally suited to you is dependent on the following:
- Your unique situation and financial circumstances
- The types of debt you have
- The level of disposable income you have available to yourself each month
- How many assets, stocks and shares you possess.
Is an IVA right for you?
How do I set up an IVA?
Unfortunately, you will be unable to set up an IVA on your own, and it is necessary for you to acquire the services on an insolvency practitioner so that they can make an IVA offer to your creditors as your official representative. Typically, an insolvency practitioner will be a licensed lawyer or an accountant.
Getting the right insolvency practitioner
If you are searching for a qualified insolvency practitioner to facilitate your entry onto an IVA, then it is best to look on the Insolvency Service site at www.insolvencydirect.bis.gov. You can also phone up your local Official Receiver to identify a good candidate, and their contact information can again be accessed on the onsite pages of the Insolvency Service.
The costs of an IVA
In order to ascertain which insolvency practitioner provides the most competitive deal, it will be necessary to shop around and request estimates from a number of organisations, so that you can compare the costs. You should enquire to each insolvency practitioner you talk to about how much they will charge you to set up your IVA and how much they will take form your payments each month as a management fee.
In order to economise on how much you spend on your IVA right from the outset, keep an eye out for IP’s who provide free initial consultations or at a lower rate, so that you can determine whether an IVA is ideally suited to you, without placing further strain on your circumstances.
The initial consultation with your insolvency practitioner
Prior to setting up your IVA, you might choose to go to an initial consultation with your selected insolvency practitioner in order to determine whether it is ideally suited to your situation. Typically these consultations can occur by telephone or in person, depending on your situation and the IP’s policy. If you give the green light to the IVA, then a further meeting will be set up in which you start the formal procedure of obtaining an IVA.
Your presiding IP is also obligated to outline all other solutions available to you before committing you to setting up an IVA. Make sure that they provide you with a pamphlet discussing IVA’s and visit the Association of Business Recovery Professionals at:www.r3.org.uk in order to obtain informative documents about its suitability to your unique situation.
Utilising a debt management firm
It is important to remember that it is not necessary for you to utilise the services of a debt management in order to set up an IVA. If you’re considering using the services of one, you should identify which aspects of debt management they provide and which fees they charge for processing and running your IVA. Certain firms will ask you for a fee if they refer you to a good IP, which evidently could be avoided as you could find one by yourself without having to spend any money.
Furthermore, if you opt to utilise a debt management firm, search for one that does not necessitate that you pay additional fees on top of the conventional IP fees you need to cover in order to attain an IVA.