IVA - What do creditors expect from it and how likely is it they'll accept it ?

I get over 90% of my IVA proposals approved by creditors, especially in consumer debt cases.  I won't put forward an IVA proposal which in my opinion a creditor would not want to accept, as rejections are bad for both me and my clients.  If I think you're not offering a fair deal, I'll tell you before I've signed you up.

To get an IVA approved, creditors will expect you to put forward a 5 year monthly payment plan from your earnings, together with a remortgage towards the end of the IVA if you own a property with significant equity in it.  You're going to have to put forward the best deal you can, creditors won't accept slack in the budget because they've seen thousands of these things before and they know how much people need to live on.

As IVAs have become so popular recently most creditors in the consumer debt sector have imposed a blanket minimum acceptance criterion of 25 pence in the pound dividend forecast before they'll even look any further at your papers, with a couple of the larger consumer lenders imposing even higher returns up to 35-40 pence in the pound.  However, if your budget suggest that you can repay the majority of your debt over the IVA period, then that's what creditors will expect you to put forward.

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IVA Questions and answers.

I have serious debt problems. What are the options ?

How do I know whether an Individual Voluntary Arrangement (IVA) is the best answer to my problems ?

How do I work out how much I can afford to pay per month ?

OK I'm considering an IVA . How does it work ?

Do I have to attend meetings, or can this all be done by correspondence ?

What do creditors expect from it and how likely is it they'll accept it ?

Are all of them forced to accept the majority decision ? I've got one hell bent on making me bankrupt.

What happens if they don't like the deal ?

If the IVA is rejected, do I owe you anything ?

I've buried my head in the sand, now I've got a bankruptcy petition hearing next week. Is there something that can be done at this late stage ?

Will it really write off all of my debts ?

Will I live in poverty for the duration of the IVA ?

What if I win the lottery or get a big pay rise ?

Will it appear in the newspapers ? Will people know about it ? Will I ever be able to get credit again ?

Is an IVA more expensive than just going bankrupt ?

What will happen to my house, furniture, car and domestic effects ?

I run a business. What will happen to my business ?

I'm a professionally qualified person. Will I lose my livelihood ?

My partner has no debts, and I'm living with him/her. Will he/she have to contribute to the IVA ?

My partner and I have joint debts. Can we lump them all together in the same IVA ?

How do you get paid ? What does this all cost ?

There are plenty of Insolvency Practitioners or debt advice companies around. Why should I instruct you ?

What happens if I'm unable to keep up with the payments ?

What happens at the end of the arrangement ?

What other web sites do you suggest I look at for bankruptcy/IVA advice ?

Please note that this site deals only with personal insolvency law in England, Wales and Northern Ireland. By law, only a Licensed Insolvency Practitioner can undertake an IVA for you. If you need an Insolvency Practitioner in Scotland, visit The Institute of Chartered Accountants of Scotland.

Copyright © Philip Beck Insolvency Practitioner, Cambridge UK, 2005. Bankruptcy and individual voluntary arrangements explained. Free IVA Advice. How to avoid bankruptcy with an Individual Voluntary Arrangement. Debt, debt advice, debt management, debt consolidation.

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