Debt Questions
Answered
- What
is an IVA?
- What
is Bankruptcy?
- How
much will it cost?
1. What is an IVA?
IVA stands for “Individual Voluntary Agreement”.
An IVA is a formal arrangement made between you and
your creditors, which creates a legally binding contract
between you and your creditors. They agree to accept
less than 100p in the pound. In an IVA you agree to
pay a single reduced affordable monthly payment for
a period of between 3 – 5 years.
If the creditors agree to the IVA they will not be
able to pursue you for further payment after the 3 –
5 year period has expired.
IVAs are usually only considered where you have a reasonable
level of surplus income available per month calculated
by excluding what the creditors expect to receive each
month.
We will be able to advise you on whether an IVA is
suitable for you.
More on
IVA
2. What is Bankruptcy?
In brief, bankruptcy is a declaration to your creditors
that you are unable to pay your debts as and when they
fall due. The office reciever or a Trustee in Bankruptcy
is appointed by the court to take over the handling
of your financial affairs for the benefit of your creditors.
After 12 months, subject to an assessment by the Trustee
in Bankruptcy, you will be discharged from Bankruptcy.
However, you will continue to be required to make income
payments for 3 years if the Trustee in Bankruptcy assesses
that you are able to afford to do so. Any assets you
own at the date of your Bankruptcy will vest in the
Trustee in Bankruptcy.
Whilst you are an undischarged bankrupt you will not
be able to operate a bank account or be a Director of
a Limited Company. There are certain jobs that you will
not be able to undertake if you are bankrupt.
Provided you include all your debts in your bankruptcy
petition, the creditors will no longer be able to pursue
you for payment directly.
We will be able to advise you on whether this is a
suitable option for you once we know what your financial
position is and your personal circumstances.
More on bankruptcy
3. How much will it cost?
We can provide you with a free initial assessment of
your financial position and advise you on how best to
proceed.
All you need to do is complete Debt Questionnaire and we will contact you once
we have considered your circumstances.
Note:
This information is not intended to be definitive.
Everyone's circumstances are different and we will be
able to advise you given your particular circumstances.
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