What is an Individual Voluntary Arrangement [IVA]?
An IVA is an agreement with unsecured creditors to compromise on the funds owed to creditor sand/ or agree a period over which some or all their debt will be settled. It is a formal insolvency procedure under the Insolvency Act 1986 and should provide a better outcome for creditors than Bankruptcy. The legal effect of an IVA is to freeze your existing creditors to allow you to deal with them in a controlled manner through an agreed plan [“the Proposal”].The Proposal needs 75% in value of unsecured creditors to make it binding on all unsecured creditors.
We will assist in the preparation of the IVA Proposal be put to the creditors. Where the individual or partners are trading a business, we will also help prepare, if required, the financial projections, including (cash flow and forecast profit & loss to be included in the Proposal. Where necessary we shall speak and sometimes meet with the business’s bankers and other key creditors, including HMRC.
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