Individual Voluntary Arrangements

At RMT Accountants, we understand that financial difficulties can be overwhelming. Our expert team provides professional guidance on Individual Voluntary Arrangements (IVAs), helping individuals regain financial stability while managing debts effectively.
An individual voluntary arrangement (IVA) is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time. This means it’s approved by the court, and your creditors must stick to it.
Our licensed insolvency practitioners oversee the entire process, ensuring compliance with the terms of the voluntary arrangement while managing the distribution of funds to creditors at agreed intervals.

How Our IVA Services Work

We tailor IVAs to suit individual financial situations. Repayment under IVAs is achieved by the debtor making voluntary contributions from monthly income after the deduction of reasonable living expenses and/or through the sale of assets. These funds are collected and managed by our insolvency practitioners, who then distribute them to creditors fairly.

For an IVA to be approved, at least 75% (by value) of the creditors who vote must agree to the arrangement. Creditors may choose to accept, modify, or reject a proposal. Voting is according to the value of creditors’ claims, not the number of creditors. Once approved, the proposal is binding on all creditors of the debtor, regardless of whether they voted against the proposal or chose not to vote.

While you have an IVA your creditors should stop:

• charging interest on your debts
• chasing you to pay your debts

While you are in an IVA you must:

• make the agreed payments; this is usually a single monthly payment or a lump sum
• let your IVA provider know if your income increases or you get any other money
• not take out any new credit without permission, for example, loans

Advantages of an IVA

• If an interim order is necessary, this will prevent further action by a creditor, subject to the leave of the court.
• Once approved, an IVA binds all creditors.
• The debtor retains control of assets as they do not automatically vest in the supervisor. Only a proportion of debts may be paid back and they are not subject to interest.
• A debtor can remain as a director of a limited company. Certain professions permit their members to retain membership which would not be the case in bankruptcy.

Disadvantages of an IVA

While an IVA offers many benefits, it also comes with responsibilities:

• The period of an IVA can be up to five years.
• Creditors will normally require a higher return than under bankruptcy.
• There is no guarantee that the proposal will be accepted by creditors.
• Creditors may seek to modify the proposal and place more onerous obligations on the debtor.
• Should the debtor fail to comply with the IVA, the terms generally provide that the supervisor must petition for the bankruptcy of the debtor.

Why Choose RMT Accountants for IVA Support?

Our expert team at RMT Accountants provides personalised support to help you navigate individual voluntary arrangements and other debt solutions. We assess your financial situation, investigate all available options, and help guide you towards the best solution for your debt and financial obligations.

See RMT Accountants right now if you need expert advice and are having debt problems. Our staff is here to assist you in recovering financial control and aiming for a debt-free future. For further details on individual voluntary arrangements, visit www.gov.uk/pay-off-debts