| An Individual Voluntary Arrangement can be an | | | | Individual Voluntary Arrangement. |
| ideal way of starting your journey to a debt-free | | | | 4. There's very little chance that anyone will find |
| future without the stigma of bankruptcy hanging | | | | out about your IVA. It's a completely confidential |
| over you. If you owe more than £15,000 | | | | matter between you, your Insolvency Practitioner |
| of unsecured debt with two or more creditors, | | | | and your creditors. This is in direct contrast to |
| and have regular income from a job or | | | | bankruptcy, where a formal notice is advertised in |
| self-employed contracts, an Individual Voluntary | | | | your local newspapers and the London Gazette |
| Arrangement could be the right option for you. | | | | for all to see. The only way your family, friends |
| There are a handful of careers where bankruptcy | | | | or work colleagues will find out is if you tell them |
| can make life especially difficult, such as those in | | | | or they go to the lengths of requesting the |
| the legal or financial services, civil service and | | | | information from the Department of Trade and |
| armed forces. Even if you don't work in any of | | | | Industry, which will list your Individual Voluntary |
| these careers, you may find that your employee | | | | Arrangement as a matter of public record. |
| contract contains a clause classing bankruptcy as | | | | 5. Your unsecured creditors cannot harass you |
| a dismissible offence. For some an Individual | | | | once you have your Individual Voluntary |
| Voluntary Arrangement may be the only option. | | | | Arrangement in place. They are legally bound by |
| But an Individual Voluntary Arrangement should | | | | the terms of that agreement and cannot demand |
| not to be undertaken lightly. It is a legally binding | | | | payment or instigate proceedings against you |
| agreement and requires an Insolvency Practitioner | | | | under any circumstances as long as you keep up |
| to help set up and then supervise the | | | | your regular monthly payments. Neither will you |
| management of your creditors for up to five | | | | have the worry or the stress of dealing with |
| years. However they are an enormously flexible | | | | creditors any more. Your Insolvency Practitioner |
| debt repayment method and have a number of | | | | will take on the management of your Individual |
| far-reaching benefits. | | | | Voluntary Arrangement and pay them on your |
| | | | behalf. All you have to do is ensure you keep up |
| 1. From the moment your IVA is set up your | | | | with your payments every month and they will |
| debts will be frozen, and interest or charges are | | | | take care of distributing the money to them It's a |
| no longer added. Any legal proceedings will be | | | | tremendously reassuring feeling knowing there's |
| stopped, although your Insolvency Practitioner | | | | someone on your side. |
| may be able to halt all proceedings using an | | | | 6. If you're a business owner you can keep |
| Interim Order before the Individual Voluntary | | | | trading relatively smoothly despite having an |
| Arrangement is granted. | | | | Individual Voluntary Arrangement. Its flexibility |
| 2. You get to keep your home and other assets. | | | | means it may not even be an obstacle to you |
| As long as an asset is not considered surplus to | | | | obtaining credit, although the terms of your |
| what you need to live - such as a second | | | | Individual Voluntary Arrangement may contain a |
| property - you will not be required to sell it under | | | | clause preventing you from seeking credit. On the |
| the terms of your Individual Voluntary | | | | other hand bankruptcy has a negative impact on |
| Arrangement. You may have to remortgage if | | | | a business - partnerships are usually dissolved and |
| you have some equity in your home, but assets | | | | you will be prevented from being a company |
| such as life insurance or a vehicle that you need | | | | director. If you are a sole trader, you may have |
| for work will be excluded. | | | | to tell suppliers you are bankrupt if you want to |
| 3. Only your actual disposal income is taken into | | | | obtain credit from them. |
| account for an Individual Voluntary Arrangement. | | | | 7. A proportion of your debt will be written off. |
| General living expenses, such as rent and | | | | Once your Individual Voluntary Arrangement has |
| housing-associated costs, food and travelling | | | | finished, any outstanding unsecured debts will be |
| expenses are allowed although luxuries such as | | | | written off. This can be as much as 75%, |
| holidays, clothes and gym membership will not be. | | | | although most creditors typically write off an |
| It really isn't as Draconian as it sounds though! It is | | | | average of 60% of your debt. |
| possible to have a good standard of living with an | | | | |