IVA Solution

While an IVA is a legal way to pay off your arrears, there are number of points you need to consider before you opt for this

Insolvency

Insolvency IVA is a great way to help you manage your debts and learn how to come out of your financial mountain

Bankruptcy

Unfortunately there are times when its possible we may need the services of a bankruptcy lawyer for accrued debts

Solutions

Most debts are taken in times of extreme need and there are many solutions that can be used to get out of debt

What we Do

Individual & Corporates Accounting Services

IVA Help

Individual voluntary arrangement (IVA) is plan that was introduced by the insolvency act of 1986 to provide people with an alternative to being declared bankrupt

IVA Advice

An IVA can let you enter into a repayment agreement with your creditors which is a legally binding agreement and an alternative to declaring bankruptcy

IVA Calculator

An IVA Calculator is something that is used to determine if someone is eligible for an Individual Voluntary agreement

Resources & Calculators

Useful Resources for Financial Management & Forecasting

401k Calculator

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Interest Calculator

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Retirement Planner

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Payment Manager

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Is IVA really a solution to debts?

Most debts are taken in times of extreme need. While a debt solves the problem for the moment, the creditors are a constant threat looming above your head. Day and night the single thought which consumes you is the repayment of the arrears to your creditors.
As a resident of UK you have two options: You could either invest time, money and effort in a Debt Management plan, which though is quite heard of is not really legally binding or you could opt for the legally binding IVA or the Individual Voluntary Arrangement governed by the Insolvency Act of 1986.

While the IVA is a legal way to pay off your arrears, there are number of points you need to consider before you opt for this. An IVA is a legally binding contract between you and the creditor in which both of you have agreed on certain amounts of fixed monthly payments for a fixed period of time which will help you clear your arrears. An interest amount is frozen on the onset of the IVA.While this sounds good on paper, there is a flip side to the IVA:

You cannot get an IVA if you have arrears of less £ 15,000. Which means you need to be really heavy in debts for any form of legal act to intervene,Your IVA proposal is subject to approval only if 75 percent of your creditors agree to your proposal. The chances of this happening are only then when the creditors calculate they will receive more from you now than when you go bankrupt. They make the money in the form of interests and commissions charged in the IVA

An IVA requires you to release any equity you have, like home or property, towards part repayment usually towards the end of the IVA. This means that you might have to remortgage your home towards the completion of an IVA arrangement. Is that not like jumping from the frying pan to the fire? If you are anyways going to draw a double mortgage on your home, is that not adding to the financial responsibilities you have to pay off? Many IVA applicants have headed towards bankruptcy towards the end of the IVA owing to this
IVA is really not a choice for all.

Some individuals facing bankruptcy might be forced into an IVA by a court order Since an IVA is legally binding, the monthly payments agreed by the IVA cannot be avoided. Add to it the further mortgages and claims on equity and it makes one reconsider the advantages of this so called debt release plan.

Contact Us

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info@diviaccountant.com

(235) 462-3512

1234 Divi St. #1000, San Francisco, CA 93215

M-F: 8am-5pm, S-S: Closed