Take the Individual Voluntary Arrangement Test

If you are personally insolvent, which means that you owe more than you can afford to repay, you may think that bankruptcy is your only option.

However, this is not always the case, as we are often able to help our clients propose and agree an Individual Voluntary Arrangement (IVA) with their creditors.

An IVA is an alternative to bankruptcy and, at its simplest, it is a deal between you and your creditors. You pay what you can afford to pay and at the end of the IVA your debts are written off and you come out of the IVA completely debt free.

Typically, an IVA will last for 5 years and during that time you make monthly payments based on what you can afford. If you have a house with equity in it, you may be required to re-mortgage the house at the end of the IVA to release an agreed share of the equity. When an IVA is agreed interest is no longer applied to your debts and, therefore, the payments you make go towards reducing your debts.

As well as five-year IVAs, it is also possible to propose an IVA involving a one-off lump sum payment. Such a payment will usually come from family and will enable the IVA to be completed in a matter of weeks.

If you’re not sure whether where you stand financially then feel free to get in touch; the sooner you act the more options you have.



Call us free & confidentially on: 0800 068 6857
Hart Shaw LLP | Europa Link | Sheffield Business Park | Sheffield S9 1XU | chris@hartshaw.co.uk