Before entering into an IVA, we strongly suggest you contact us to discuss whether this is indeed the right solution for you. If it is, we will direct you to our appointed Insolvency Practitioner, who will happily discuss all the elements of an IVA. If an IVA is not the right solution for you, we will ensure that you are given the best advice possible as regards a more appropriate solution.
An IVA should only to be considered if you have assets to protect or are in employment that will be affected by you entering into bankruptcy (check your contract of employment). If you are in rented accommodation or living in a property where there is no equity, then bankruptcy is almost certainly a better alternative.
There are some things which may prevent you from getting a debt relief order. These include:
- if you are currently bankrupt
- if you have an Individual Voluntary Arrangement (IVA) or are applying for an IVA
- if the companies you owe money to (your creditors) have applied to make you bankrupt but the hearing hasn’t taken place. (If your creditors agree however, you may still be able to apply for a DRO.)
- if you have been given a Bankruptcy Restrictions Order or Undertaking
- if you have petitioned for bankruptcy but your petition has not been dealt with to date – unless the judge has referred you for a debt relief order instead.
- if you have already had a debt relief order in the last six years
- if you have been given a Debt Relief Restriction Order or Undertaking.
For more details on whether you can get a debt relief order, ask your authorised adviser.
If you are at the point where you realise that you need assistance because your company debt is at a level that you need assistance then we can help.
There are only 4 options to consider:
1. Do Nothing- Wait and see what happens and remain in survival mode until the outcome
2. Bankruptcy- We always suggest that bankruptcy is considered first as an option opposed to last. The reason is because if you have no assets, live in rented accommodation or own property where there is minimal equity, the bankruptcy is possibly the fastest way of eliminating unmanageable debts. It provides a fresh start t your financial life. We provide a pre bankruptcy counselling service.
3. Individual Voluntary Arrangement or Company Voluntary arrangement- This can be arranged 2 ways. Either an income based voluntary arrangement or an asset based IVA. The essence of these arrangements is to allow you to make a legal agreement with your creditors whereby you make an offer to your creditors. ( the people and organisations you owe money to) and make them an offer . Providing 75% of the total amount of debt agree to the proposal then the other 25% would have to go with the arrangement.
4. Informal agreement with creditors made on a one to one basis that resembles a commercial debt solutions plan.
Don’t be fooled by so called professionals enticing people into certain arrangements. It does happen and if you are unsure about what to do then please don’t rush into just anything because its easy! Remember it takes 5 minutes to sign up and commit to these agreements but its a lot harder to cancel them.