Individual Voluntary Arrangement explained – your questions answered.
If I’ve entered in to an Individual Voluntary Arrangement, can any unsecured creditors take any more action against me?
No. Once the IVA has been approved, all unsecured creditors are actually bound by the arrangement.
Once I’ve entered in to an Individual Voluntary Arrangement, can creditors add any interest or charges?
No. Once the Individual Voluntary Arrangement has been approved, creditors are unable to add any further interest and charges. And effectively, the debt is frozen as of that date.
At the end of an Individual Voluntary Arrangement, what happens if I haven’t paid all the debts?
At the end of the arrangement, provided that your IVA is completed successfully, any remaining balance of the liability is, as if, the slate is wiped clean. There is no further money to be paid.
If someone isn’t sure whether they qualify for an Individual Voluntary Arrangement or not, what should they do?
Contact Tim, Cheryl or Janet on 01922 722205 at Griffin and King to talk through your financial circumstances, and have an Individual Voluntary Arrangement explained in more detail. We will advise you on what options are available to you, to allow you to decide what is right for you.
What is the difference between a debt management and an Individual Voluntary Arrangement?
A debt management plan is an informal arrangement with your unsecured creditors, whereas the IVA is a formal agreement with your creditors. The difference being, a debt management plan doesn’t give you any protection from your creditors, and they can add interest and charges. Whereas the IVA does give you the protection from your creditors taking further action and it also freezes interest and charges.
You can watch our video on Individual Voluntary Arrangements (IVAs) FAQs – Part 2 along with many other Individual Voluntary Arrangement videos on our YouTube channel.
If you would like an Individual Voluntary Arrangement explained in more detail then please contact Tim, Cheryl or Janet at Griffin & King Insolvency Practitioners today on 01922 722205.