| 1888 Articles Home | Business Articles | Business RSS |  |
||
What is an Individual Voluntary Arrangement? |
||||
|
An Individual Voluntary Arrangement is an arrangement through the county court and the debtor to pay off outstanding debts over a short period of time. The length of an IVA usually averages out to about five years for most cases. |
||||||||||||
| Author: Andrew Waldenson |
|
|||||||||||
To begin an Individual Voluntary Arrangement, one must attain an insolvency practitioner or an IP, who can legally write out an IVA proposal. Once an IVA is agreed upon between the IP and the debtor, the IP can apply at the county courts for an “interim order.” This order stops creditors from starting bankruptcy procedures against an individual without consent from the court. The IP then sends the IVA to all of the creditors, and sets up a “creditors’ meeting.” The creditors’ are given a 14 day notice to attend the meeting. A 75% agreement for the IVA must be reached for the document to be enforced. It’s a time consuming process but maybe worth it for some in the end.
After the agreement has been reached between the creditors and the debtor, the IP supervises while one makes the monthly payments and eventually pulls themselves out of debt. IVA’s are not for everybody. One must have enough money left over at the end of the month to make the monthly payments and still be able to support themselves and their families. But for those who can afford it, IVA’s are a viable option for those who don’t want to or can’t afford to file bankruptcy.
About Author
Written by Andrew Waldenson. Find the latest information on IVA as well as Individual Voluntary Arrangement
Article Source:
http://www.1888articles.com/author-andrew-waldenson-7557.html
Other Related Articles The 411 on Company Voluntary Arrangement by Andrew Waldenson What is Company Voluntary Arrangement? by Andrew Waldenson What is an Individual Voluntary Arrangement? by Andrew Waldenson What You Need to Know About an Individual Voluntary Arrangement by Andrew Waldenson How a Company Voluntary Arrangement Works? by Andrew Waldenson Individual Voluntary Arrangement: The Alternative to Bankruptcy by Andrew Waldenson |
