[peter]

Hi,

Individual Voluntary Arrangements (IVA) is considered as an alternative to bankruptcy. It is an agreement between the debtor and the creditor, which allows the debtor to pay a percentage of the total debt amount over the time span of IVA. In general the total time span of IVA is 5 years. Once the IVA is over the remaining amount of debt that you owe will be written off.

IVA debt consolidation strategy is initiated by the debtor and must be set up by an insolvency practitioner through the county court.

The stigma associated with bankruptcy is not here with IVA. The restriction imposed over the debtor in case of bankruptcy, is highly eliminated too. The debtor can run a business, can hold good post in any organization, and can continue serving the country after an IVA. The debtors are also allowed to select the assets that they like to trade for repaying their debts. So the debtors have more options to pay the debts, unlike bankruptcy.

However, IVA has a negative impact on the credit report, similar like bankruptcy and it can stay in the file as long as seven years after the expiration of the IVA.

If one defaults on the payments towards IVA, the practitioner working on the case is allowed to continue bankruptcy proceedings against the debtor.

So before going for an IVA, think carefully all the alternatives you have. Go through the advantages and disadvantages of IVA very well. Consult an efficient practitioner. There is an upfront fee for IVA hearing and if the IVA is not accepted, it might take you to the worst condition.

Regards,
Peter

[ben]

Hi Peter,

Thanks for sharing this information. Let me know if iva debt consolidation is tax deductible or not. I wish to plan accordingly.

I will be waiting for your reply.

Take care

Ben

i went on an iva debt consolidation strategy to escape a bad marrage,it was the only way i could leave my husband,i had never missed a payment on anything,so i went on an iva to make sure i did not miss payments and that i had enough to look after my children.This has caused me to be refused a job,i have now started my own buisness and no one wants to have anything to do with me.Cant get insurance,cant get security alarms,cant get a credit card machine,i dont want any credit just the normal security you have for a buisness.But why do people treat me like a criminal,my husband declared bankrupsy paid £30 FOR 6 MONTHS NOW HE PAYS NOTHING,me because im on an iva pays nearly £500 amonth,i no longer have my good paid job and find it hard trying to make my buisness work because people hold it against me having an iva,WHY

[littlephoenix]

scobbiedo, what kind of business do you wan to open or have opened and have you tried to find a cosigner? Have you thought about opening up an online store, as the overhead will be much less, actually no overhead so it will give you a kick start into your business.