If your circumstances are right an Individual Voluntary Arrangements enables you to avoid the stigma and cost of bankruptcy by legally binding your creditors with their agreement to receive payment in part or, in some cases, in full, over a period of time which is usually three to five years.
This is a real alternative and can provide an effective solution. Whether you wish to retain your family home or rescue a viable business, an Individual Voluntary Arrangement could help you to turnaround your finances.
Should we determine an IVA is appropriate for you we will guide you through the procedure and assist in the formation and drafting of proposals which are to be presented to your creditors. Where appropriate we will consult with other interested parties including government departments, lenders and major creditors to seek their views and requirements for a successful solution.
An IVA is an extremely powerful tool enabling you to clear your debts and return to financial stability.
For a FREE NO OBLIGATION discussion please complete the following form and Mark Botwood will contact you.
Do all my creditors have to agree?
Every creditor receiving notice of the creditors meeting is entitled to vote at that meeting. This is particularly important as only those creditors notified and entitled to vote at the meeting are bound by the arrangement. This does not mean however all creditors notified and entitled to vote must vote in favour of the arrangement. Acceptance of the proposal or modifications of the proposal require in excess of a 75% majority in value of the creditors present in person or by proxy and voting on the resolution.
Why should a creditor accept the proposals?
Proposing an arrangement will, if accepted, enable the individual to avoid the stigma and consequences of bankruptcy. Creditors are advised to consider arrangements very carefully. If the arrangement clearly provides a greater return than available in bankruptcy and if it appears reasonable and likely to succeed then you should consider voting in favour. If the proposal looks ill conceived with very little chance of success then it should be opposed.
How are my creditors paid?
The supervisor of the arrangement will distribute funds to creditors in accordance to the terms of the proposal document agreed by the creditors.