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Individual Voluntary Arrangement UK
The majority of people want to avoid bankruptcy
as its effects are financially crippling not only for the period
of the bankruptcy but far beyond in the terms of credit rating.
In the majority of bankruptcy cases where there
is a house that has a value more than its mortgage, whether jointly
owned or not or there are children living in it, the equity has
to be realised, which may mean that either your wife or partner
has to purchase your interest or it has to be sold further adding
a burden to your personal relationship.
In some cases bankruptcy can only be the best
advice but the less well known solution is an Individual Voluntary
Arrangement (IVA) which was introduced as an alternative to
bankruptcy by The Insolvency Act 1986.
to complete our Financial HealthCheck so that we can assess your
suitability for Individual
Voluntary Arrangement.
Why is an Individual Voluntary Arrangement
not commonly offered to individuals facing financial difficulties?
Simply:-
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An IVA is highly regulated
by an Act of Parliament and is less likely to be open to
abuse by those who offer this service.
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Only a Licenced Insolvency Practitioner,
belonging to a recognised professional body, can act as
your Supervisor who will be introduced to you by Debts-Solved.
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The IVA is not advertised in any
newspaper unlike a Bankruptcy Order.
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A private contract, commonly known
as a proposal, is written on your behalf to deal with claims
of unsecured creditors in accordance with the Insolvency
Act 1986.
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Every consideration is given to the exclusion
of the matrimonial home from the proposal.
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A named Licenced Insolvency Practitioner
acts as Supervisor throughout the term of the approved IVA.
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Fees are regulated in accordance
with the Insolvency Act 1986 and sanctioned by creditors.
These are set out in the proposal so that you know exactly
who is being paid what, when and from where.
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After the preparation of the proposal an
Interim Order of the Court provides creditor protection
from debt enforcement and bankruptcy.
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All unsecured creditors to whom the proposals
have been sent, are bound by the Arrangement, even
if they do not agree to the proposal, if more than 75% of
your remaining unsecured creditors agree to the proposal.
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When the proposals are approved interest
on debts cease from that date.
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Those creditors who are bound by the proposal
cannot petition for your bankruptcy in relation to the debts
in the Arrangement and also agree to waive the balance
of their debt when the Arrangement has successfully
been concluded.
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If your financial circumstances change
beyond your control the Licenced Insolvency Practitioner
will always be sympathetic and advise you on the
appropriate course of action to assist you.
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Clearly the IVA, if appropriate to your circumstances,
due to its very nature and highly regulated regime, is the best
way forward.
In order for us to fully assess your financial
position we require you to complete the following Financial
HealthCheck form
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