Month: March 2023

Is It Possible To Do A Joint IVA ?

A joint IVA is suitable for couples or business partners who have joint debts and are struggling to repay them.

Yes, it is possible to apply for a joint IVA (Individual Voluntary Arrangement) with another person. A joint IVA is suitable for couples or business partners who have joint debts and are struggling to repay them.

A joint IVA allows both parties to consolidate their debts into one affordable monthly payment, which is distributed among their creditors. The terms of the IVA agreement are binding on both parties, and they are jointly responsible for fulfilling the obligations of the IVA.

It is important to note that both parties need to meet the eligibility criteria for an IVA, and their financial circumstances will be assessed together to determine the suitability of a joint IVA. You should consult with an IVA advisor to see if a joint IVA is the right solution for your situation.

To apply for a joint IVA (Individual Voluntary Arrangement), you will need to follow these steps:

  1. Seek Professional Advice: Contact an IVA company who can advise you on the suitability of a joint IVA. They  will assess your financial circumstances and determine if a joint IVA is the right solution for your situation.
  2. Gather Information: Collect all the necessary information, including your personal and financial details, and those of your joint applicant (if applicable), such as debts, assets, income, and expenditure.
  3. Discuss the Terms: If a joint IVA is deemed suitable, the IVA company will discuss the terms of the IVA with you and your joint applicant, including the monthly repayment amount and the duration of the IVA.
  4. Create a Proposal: The Insolvency Practitioner will create a proposal outlining the terms of the joint IVA and present it to your creditors for approval.
  5. Agree with the Creditors: If the creditors agree to the terms of the IVA proposal, it becomes legally binding on all parties, and you will make regular payments to the IP for distribution to your creditors.
  6. Fulfil the Obligations: You and your joint applicant will be responsible for fulfilling the obligations of the IVA, which may include making monthly payments, providing regular financial information to the IP, and adhering to other conditions outlined in the IVA.

It is important to note that a joint IVA is a significant financial commitment, and failure to adhere to the terms of the IVA could result in bankruptcy. Therefore, it is crucial to consult with a Debt advisor before making any decisions about entering into a joint IVA

Is An IVA Better Than Bankruptcy

Whether an Individual Voluntary Arrangement (IVA) is better than bankruptcy depends on your specific financial circumstances and goals.

An IVA is a legally binding agreement between you and your creditors to pay off your debts over a set period of time. It allows you to avoid bankruptcy and keep your assets, such as your home, provided you keep up with the payments. IVAs typically last for five to six years and any remaining debt is written off at the end of the term.

Bankruptcy, on the other hand, is a legal process that can be a quicker way to get rid of your debts, but it can also come with more severe consequences. Bankruptcy can lead to the loss of assets, including your home, and can affect your credit rating for several years.

So, if your main concern is protecting your assets and avoiding the long-term impact on your credit rating, an IVA may be a better option. However, if you have few or no assets to protect and need a fresh start as soon as possible, bankruptcy may be a better option.

It’s important to note that both options come with advantages and disadvantages, and you should seek professional advice from a debt advisor or insolvency practitioner to help you decide which option is best for you.

What If I Am A Homeowner?

On the one hand, bankruptcy can provide relief from debt and stop any legal action against you, including repossession or foreclosure proceedings on your home. However, depending on the value of your home and the amount of equity you have in it, you may be required to sell it as part of the bankruptcy process to pay off your creditors.

Additionally, bankruptcy can have a significant impact on your credit score and remain on your credit report for up to ten years, which can make it more difficult to obtain credit or loans in the future.

If you’re considering bankruptcy and are a homeowner, you may want to explore other options such as an Individual Voluntary Arrangement (IVA) or a Debt Management Plan (DMP) before making a final decision.

An IVA may allow you to keep your home and make manageable payments towards your debts over a set period of time. A DMP can also help you repay your debts over time, but without the legal protection of an IVA or bankruptcy.

How Long Does Bankruptcy Take To Clear My Debts?

Bankruptcy usually lasts for a period of 12 months, after which most of your unsecured debts are discharged. However, it’s important to note that some debts, such as student loans, court fines, and child support payments, are not typically included in bankruptcy and will still need to be repaid.

During the 12-month period of bankruptcy, a trustee will be appointed to manage your finances and sell any assets that are not protected by law to repay your creditors. Any remaining debts will be written off at the end of the 12-month period, allowing you to start afresh.

It’s important to note that bankruptcy can have long-lasting effects on your credit score and financial history. The bankruptcy will remain on your credit report for a period of six years from the date it was declared, which can make it more difficult to obtain credit or loans in the future.