An IVA is a legally binding contract between yourself and your creditors, which will generally last for five years. You will put forward a proposal in settlement of your debts to your creditors based upon the following:
- A fixed monthly contribution based upon your available disposable income. This will be reviewed regularly.
- If you own your property you will be required to take reasonable steps (by way of re-mortgage or provision of third party funds), to make your share of the equity available to your creditors.
- If the IVA is based on your sole liabilities you are only obliged to realise your share of the equity in a jointly owned property, ensuring your partner's share remains unaffected.
Provided that 75% in value of those creditors who vote are in favour of the proposal, the IVA is accepted. As long as you keep to the terms of your IVA once it has been approved, all of your creditors who were entitled to vote are legally bound. This means that:
- Your creditors can not bring further action against you
- Your creditors can not change their minds at a later date
From the date of approval of your IVA all interest and charges are frozen. Unlike bankruptcy there is no advertisement of the IVA in a local paper. Your professional status or ability to hold public office will not be affected in most cases.
On completion of the IVA, provided that you have adhered to its terms, the balance of your debts is written off.
Contact the Revival Team Now