WHAT IS AN IVA?

In simple terms an IVA can be defined as a formal 5-year agreement between you and your creditors.

The agreement is drawn up and submitted on your behalf by a licensed insolvency practitioner, who then will oversee the payment of your debts on your behalf.

To qualify for one of our IVA programs you must have at least £15,000 of debt to your unsecured creditors and be able to pay at least £200.00 per month to your plan, however, by entering into an IVA your credit rating will be affected for up to 6 years.

THE PROCESS OF THE IVA

• We take you through every step of the process in a sympathetic, professional and completely confidential manner. We have been successfully advising clients with their debt problems for over 10 years. After an initial no-obligation telephone informal consultation with you, we go through your financial position and advise you on the way to proceed.

• If you would be best served by entering into an IVA, we do all the preparatory work for you. After the initial steps have been taken, and we believe you meet the criteria for an IVA, we then pass your case to our own in-house Insolvency Practitioner (known as an ‘IP'). Our IP then acts on your behalf in all correspondence with your creditors and the preparation of your financial statement, once the case is underway.

• Our Insolvency Practitioner, with your help, will produce a written proposal. This will be sent to your creditors in advance of a pre-determined creditor's meeting, usually held at the Insolvency Practitioners offices in the absence of both yourself and your creditors. ( You do not have to attend a Creditor's meeting .)

• The IVA proposal includes details of your income and expenditure, a full list of your creditor debts with amounts due and a detailed history of your problems, including past and present circumstances. This, along with a statement of affairs, shows what you are looking to offer and over what period of time.

• Once your proposal has been finalised our IP, if he deems necessary, will apply to your local County Court for an Interim Order. The Interim Order provides you with valuable protection against debt enforcement such as CCJ's, Attachment Orders, and even Bankruptcy Orders.

• All your unsecured creditors are bound by the arrangement, even if they do not agree to the proposal, provided that more than 75% by value of the unsecured creditors agree to the proposal.

• Interest on all debts stops from the date of the meeting once the debtor's proposal has been approved.

• After the creditor's meeting, our IP will then take on the role of Supervisor in the IVA. Normally, as part of his role, he will undertake to review your income and expenditure on a regular basis so that any changes to your circumstances, financially or otherwise, can be reported to your creditors.

• The creditors are bound by the arrangement and must not pursue you in any way outside the IVA agreement. Creditors cannot petition for your bankruptcy in relation to the debts included in the agreement and also agree to write off the balance of the debt once the arrangement has successfully been concluded.

• During the term of the IVA, if your circumstances change, for example a loss of job, the Supervisor will be sympathetic and will be able to advise on an appropriate course of action to be taken.

• If you are a homeowner and have a reasonable amount of equity in your property, the supervisor of the iva may require you to revalue your home at the 4th year and realise the equity to pay off some or all of your debt.

Debt Release Direct Ltd
First Floor, Crown House, Bury, Lancashire, BL9 7JR
Who's company details are as follows :