Best IVA Company?in UK to Help You in Times of Bankruptcy

Posted by Oliver Watson on April 5th, 2017

While running a business, many people in their individual capacities or in the name of their companies take loans from creditors. Due to some reasons, they are not able to repay these outstanding debts. Under these circumstances, a legal proceeding is initiated by the debtor or on the behalf of the creditors known as bankruptcy. During the bankruptcy process, all the debtor's assets are measured and evaluated and may be used to repay the outstanding debt. Off late, the courts have allowed different arrangements for the debtors to pay off their debts over a fixed period of time. Individual Voluntary Arrangement or IVA is one such agreement in which the court typically asks the debtors to repay the outstanding amount in 60 months.

IVA is set up by an insolvency practitioner where the debtors have to pay fixed monthly repayments according to their available disposable income. This arrangement is good for those people who have a fixed source of income and are able to get support from a debt management company. After securing a deal with any debt management company, the debtor and his/her attorney will prepare an IVA proposal and present it in the court. This proposal contains the current financial situation of the debtors and the realistic repayment plans that will be followed by them. At least 75% of the creditors will have to approve this plan before the debtor could get an IVA. And if the debtors default on the monthly payment, the bankruptcy proceedings may be reopened by the creditors that can make their condition more worse.

Since the time IVA has came into picture, it brought a lifeline for the debtors as it gives them the option to clear their debts in easy installments. Also, it brings many advantages such as the freezing of all interests and charges on the debt after IVA is forced. IVA can include some of the priority as well as non-priority debts of the people such as bank loans, credit card bills, council taxes and electricity & gas taxes while excluding some of them like student loans, court fines and court maintenance arrears.     

If you are facing insolvency issues and looking for an individual voluntary arrangement (IVA) in UK, you can get in touch with a company that deals with debt issues. You can go online and search for best IVA company in UK so as to get rid of your outstanding debts in a feasible way.

Author’s Info: The writer is a blogger. This article is about individual voluntary arrangement in bankruptcy.