|
A Full and Final settlement IVA is a legally binding arrangement with your creditors
which allows you to repay a proportion of your debt in a one off lump sum payment.
Normally the lump sum is raised by remortgaging your property or introducing
a lump sum from relatives. For individuals over retirement age, an equity release
scheme may be possible.
This is an ideal solution for individuals who are able to raise a sum of money,
but after providing for their reasonable costs of living including their increased
mortgage payment, do not have any surplus income.
Creditors are likely to accept your full and final settlement if we can demonstrate
that this offers a better return than bankruptcy.
Your IVA proposals are put forward to creditors in a document called proposals.
The proposals are lodged into Court and your creditors also receive a copy.
If your assets are at risk because of action taken by creditors, an Interim
Order can be applied for, which means that creditors cannot commence or continue
with any action against you and your assets unless
the
Court permits
them to do so.
A meeting of your creditors is held and creditors are able to vote on whether
to accept, alter or reject your proposals. As long as you proposals demonstrate
a genuine desire to repay as much of your debt as you can afford, it is likely
that creditors will accept your IVA. It is the insolvency practitioner's role
to guide you on what creditors will find acceptable.
Once your IVA is approved all interest and charges on your unsecured debt
is frozen. Also due to the fact that an IVA allows you to repay a proportion
of your debt, then as long as you adhere to the agreed terms, the remaining
balance of your debt will be written off.
Click here for
to see if you could qualify for an IVA>>
|
