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+ 0 - 0 What is an IVA?

Posted at 14:08 on 02 05 09 in default | 0 Comments | Trackbacks

An IVA is an Individual Voluntary Arrangement. Individual Voluntary Arrangements were introduced by the government in 1986 as part of The Insolvency Act. An IVA enables you (the debtor) to make a proposal to the people (the creditors) that you owe money to and come to a settlement. The proposal will need to be accepted by the majority of your creditors for an IVA to be approved. An approved IVA will then stand as a contract that binds all parties and will prevent any further action against you, the creditors that didn’t accept the proposed IVA will also be forced to enter the IVA if the majority have approved.

What do you need to do?

You will be required to make a monthly payment over a 60 month period and after that whatever debt is left will be totally cleared, leaving you 100% debt free. An IVA is available for individuals, sole traders and partners who are struggling with their debts. An IVA is particularly used by individuals who own their own property and want to avoid the possibility of losing it through bankruptcy, an IVA is also usually the choice of individuals whose employment is of a professional status that would be affected otherwise through bankruptcy.

An IVA is a legally binding contract between you and your creditors and due to its formal nature it is supervised by an insolvency practitioner. IVAs allow you to offer a larger repayment towards your debts than would be expected if you were to be made bankrupt.

+ 0 - 0 Avoid bankruptcy?

Posted at 14:07 on in default | 0 Comments | Trackbacks

Disadvantages

You lose control of your assets (house, savings, expensive car (over £2500)
You cannot obtain credit for over £500 without the declaring that you are bankrupt..
You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.

Occupations affected

You cannot act as a company director.
You may not practice as a Charted Accountant / Lawyer.
You may not act as a Justice of the peace (JP).
You may not become an member of parliament.
You may not become a member of the local authority.

+ 0 - 0 Scottish residents - Bankruptcy and Sequestration

Posted at 14:05 on in default | 0 Comments | Trackbacks

Personal bankruptcy for Scottish residents is called Sequestration.
To be sequestrated you must owe at least £1,500 and either:

one or more of your creditors must have taken you to court to enforce or demand you repay a debt or
you must have been on a debt payment programme under DAS that has been revoked and one of the creditors in the DPP have been to court and obtained a decree on one of the debts.

This situation is termed Apparently Insolvent.

Apparently Insolvent

If either of the following apply to you then you are apparently insolvent:

If you have not paid within 14 days notice of obtaining a ‘Charge for payment’.
If you have not paid within 14 days notice of receiving a summary warrant against you to recover rates, Council Tax, other taxes etc.
If you have not paid within 21 days notice of being served a Statutory Demand for Payment.

These are the main ways in which you can be sequestrated.

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