What is it?

+ An IVA is a formal procedure which is provides a legally binding agreement between an individual and their creditors. It is an alternative to Bankruptcy depending on each individual’s personal circumstances and can be a way to allow an individual to manage their financial position and provide some negotiation regarding their assets.

What happens?

+ You may be subject to creditor pressure regarding outstanding debts

+ Creditors may also seek to take remedial action against you

+ A determination of the most suitable option for you and your circumstances will be undertaken

+ If an IVA is the most appropriate option for you, a meeting is arranged to discuss the process with you.

+ If you own assets these will need to be reviewed in order assess whether they are required to repay your creditors.

 What are the benefits?

+ Debts are cleared after a set period

+ Interest is frozen and charges stopped once the IVA is agreed

+ An IVA is automatically binding on all unsecured creditors

+ Protection from action by unsecured creditors can be obtained whilst an IVA is put in place

+ An IVA will usually last for 5 years but can be less depending on circumstances

+ You can remain a Company Director and continue to trade

+ The equity in the value of your home will be part of IVA assets and normally is not dealt with until year 4 of the IVA

+ All unsecured debts are allowed except for fines, student loans, tax, social fund loans, some benefits, an element of council tax and utilities and child support.

+ Some assets can be excluded from an IVA

What is the process?

+ A review your financial position will be undertaken. If upon review an IVA is right for you then the process will commence.

+ A booklet and factfind document will be provided for you to complete.

+ We will become your Nominee

+ A formal written proposal together with a statement of your affairs will be drafted to present to your creditors. This will normally detail all of your debts and the background to them.

+ It is important that you agree and sign this document as being the very best offer that you can make to your creditors. It has to be fit, fair and feasible.

+ The Proposal will be circulated to your creditors and a meeting date set for the proposal to be approved. Creditors may accept your proposal with or without modification.

+ At the creditors meeting this will provide an opportunity for the creditors to discuss your proposal. Your creditors may not attend the meeting but will offer their acceptance of the proposal in writing. A value of 75% of the creditors who have voted for the proposal either in writing or in person is required for the proposal to be accepted.

+ The proposal then becomes legally binding on all creditors.

+ All creditors are formally informed of the result of the meeting and your Nominee will become a Supervisor of the IVA.

+ Once the term of the IVA and your conditions of the IVA have been fulfilled you will be free from your debts, and any outstanding balance will be written off.

How do we help?

+ We can assist with the preparation of all relevant forms which are compliant with legislation

+ Our designated hand-picked team meets with and works directly with you. Face to face meetings are held at every stage of the process, if you require, to help simplify the process and understand your needs.

+ Unlike other firms, our quoted fees are specific to the case and the help that you need from us.

Therefore, you are in control of the process and are able to match the right fee quote to your specific requirements

Enquire by email info@aspectplus.co.uk, request a call back here or call one of our team on 0800 988 1897

What is it?

+ A formal Court process which enables the majority of unsecured debts to be dealt with as part of your Bankruptcy estate so you can become debt free.

What happens?

+ You may be subject to creditor pressure regarding outstanding debts.

+ Creditors may also seek to take remedial action against you.

+ A determination of the most suitable option for you and your circumstances will be undertaken.

+ If Bankruptcy is the most appropriate option for you, a meeting can be arrange to discuss the process with you.

+ If you own assets these will need to be dealt with in order to repay your creditors.

+ It is important to note that restrictions will be imposed upon you whilst you are an undischarged Bankrupt which include not obtaining credit above £500 or more without informing the lender of your Bankruptcy status and you cannot be a Company Director.

What are the benefits?

+ Debts cleared after a set period.

+ Once a Bankruptcy Order has been made, interest is frozen and charges stopped.

+ Automatic protection from action by unsecured creditors.

+ Normally after 12 months you will receive automatic discharge from your restrictions.

+ The current minimum amount you must owe to declare Bankruptcy is £750, which is proposed to change to £5,000 from October 2015.

+ All unsecured debts are allowed except for fines, student loans, tax, social fund loans, some benefits, an element of council tax and utilities and child support.

+ A Trustee has three years from the date of the Bankruptcy Order to realise any interest in the property in which you reside.

What is the process?

+ A Bankruptcy petition can be presented either by a creditor or the debtor themselves. For a creditor’s petition, there has to be a sum of £750 (at present) or more owing to them from the debtor. If not, a joint petition of several creditors is necessary.

+ If you present your own petition this will need to be submitted together with a statement of your affairs.

+ The amount owed has to be an unsecured, liquidated sum. A creditor will have to obtained a statutory demand for payment before they can present a petition.

+ If you present you own petition, a Court fee of £705 will need to be paid to enable the petition to be dealt with. The Court fee for a creditor’s petition is £1,030.

+ The Court will review the petition presented by the debtor or the creditor and determine whether to make a Bankruptcy Order or not.

+ On the making of a Bankruptcy Order, the court will appoint an Official Receiver to take control of the any property which forms part of your Bankruptcy estate.

+ The Official Receiver will decide whether it is necessary to call a meeting of creditors to enable them to appoint an insolvency practitioner of the creditors’ choice as the Trustee in Bankruptcy.

+ All of your personal property would be treated as vested in the Trustee in Bankruptcy on the date of the Bankruptcy Order.

+ You will be allowed to keep basic essentials for your trade and day to day living.

+ The Trustee in Bankruptcy will seek to realise assets in order to pay the Bankruptcy debts.

+ A first-time Bankrupt can usually be discharged one year after a Bankruptcy Order is made. The Bankrupt is released from most of their previous debts and freed from restrictions imposed.

+ Any property that has vested in the Trustee in Bankruptcy remains so, and is not returned to the debtor.

How do we help?

+ A free and confidential consultation is available with Aspect Plus whereby it can be assessed whether Bankruptcy is the best option available to you so you can reach an informed decision.

It is important that advice is sought early so the options available to you can be discussed.

Enquire by email info@aspectplus.co.uk, request a call back here or call one of our team on 0800 988 1897