Insolvency Property Portfolios
Formal Insolvency Appointments
Individual Voluntary Arrangement ("IVA")
An IVA is a legally binding arrangement supervised by a Licensed Insolvency Practitioner, the purpose of which is to enable an individual, sole trader or partner ("the Debtor") to reach a compromise with his/her creditors and avoid the consequences of Bankruptcy. The terms of the IVA are contained in a specific drafted document known as a Proposal, which is filed in court.The Debtor’s creditors have to vote to accept his or her Proposal for an IVA at a meeting of creditors and generally will if what is being offered is a larger repayment to creditors than would be otherwise expected were the Debtor to be made bankrupt. This is often facilitated by the Debtor or a source not available in a Bankruptcy making financial contributions to the IVA from income over a designated period of time.
An IVA is available to all creditors, sole traders and partners who are experiencing creditor pressure and it is used particularly by those who own their own property and/or are of a certain profession whose ability to earn significant income would be jeopardised by a Bankruptcy procedure.
It is often used by sole traders and partners who have suffered problems with their business but wish to secure its survival as they believe it will be profitable in the future thus allowing a greater repayment to creditors than could otherwise be expected were they made bankrupt and their business consequently ceased trading.
Should you feel that your debts are becoming unmanageable and wish to explore whether an IVA is suitable for you please do not hesitate to contact either of Stephen Hull (Leeds) or James Sleight (London) where we will be more than happy to discuss your financial difficulties through with you and recommend a feasible solution. All initial consultations are free of charge.
Please be advised that Geoffrey Martin & Co is unable to offer advice on Debt Management Plans or Debt Relief Orders.