What is an Individual Voluntary Arrangement (IVA)?
If you are currently considering an individual voluntary arrangement to handle all your debt, today's guide aims to answer, as comprehensively as possible; all the major aspects including the pros and cons of apply for an IVA you will require knowing. What is an IVA in the UK? An IVA is a settlement agreement between an Individual & their creditors. An individual can make a proposal offering monthly payment plans over a 1-5 year period or maybe offering a lump sum amount. The IVA might need lenders to compromise on their debt to receive a pence in the pound distribution. The individual voluntary arrangement is a binding agreement that can be applicable for all lenders & requires acceptance at the lenders’ meeting of nearly 80% of lenders voting in favor of the Proposal. The Insolvency Practitioner (IP) acts as a Nominee in presenting the settlement plan to lenders & then if acknowledged will act as Supervisor of the Arrangement. This is pretty ess...