Individual Voluntary Arrangements (IVAs)

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Our Personal insolvency service provides simple advice and solutions to individuals experiencing personal debt problems.
RCM Advisory are licensed Insolvency Practitioners. Only licenced insolvency practitioners can negotiate Individual Voluntary Arrangements (IVAs) with your creditors. We can explain the process, will gather the facts and set out your options for you.
If we find an IVA is not suitable, as a last resort we can offer an assisted Bankruptcy service to bring closure.

  • We can offer a FREE confidential consultation to discuss your options
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Common questions about IVAs:

Frequently Asked Questions

An Individual Voluntary Arrangement (IVA) is an alternative to personal bankruptcy in the form of a legally binding agreement between the individual and his/her creditors. The agreement will allow the debtor to make monthly payments in order to pay back their debt, or usually a portion of it over a set period of time (usually 5 years). Only an authorised Insolvency Practitioner can propose and act as nominee or supervisor of an IVA.
An IVA will only deal with unsecured debts, such as bank loans, credit cards, store cards and overdrafts. If an IVA is agreed by 75% or more (in value) of the creditors, the remaining unsecured creditors are bound to accept the terms of the agreement.
Secured debt will remain outside of an IVA. If a secured asset. i.e. your home has more than enough equity to repay the unsecured creditors, they would most likely expect full or near full repayment over the term of the IVA to make the proposal attractive. Once an IVA is approved and if you comply to the terms, creditors will be prevented from taking legal actions to make you sell.
There is a cost to setting up an IVA, which is determined by the value and number of creditors. The fees are drawn from the IVA contributions; therefore, the creditors pay the fee out of the money that has been repaid.
An IVA will affect your credit rating for 6 years. This will begin from the start date of the IVA.
Possibly, policy varies from bank to bank. If you have any outstanding credit agreements with the bank that provides the account, such as an overdraft, a credit card or a loan, those would need to be included in your IVA. As a result, they would often close your existing account and could offer you a 'more basic' account. If you have no outstanding credit agreement with your bank, they would not be formally informed about your IVA.
A face to face meeting is preferable to formalise the IVA proposal. However, depending on the circumstances, attitude of the debtor and complexity of the case we may be able to offer virtual meetings if you prefer.

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