HJS Recovery will take formal steps to agree a repayment method with your creditors. This is known as an Individual Voluntary Arrangement. (IVA)
An IVA is a legally binding agreement with you and your creditors whereby you agree to pay a monthly sum that you can afford for an agreed period, normally 5 years. In return for your commitment to pay the agreed sum, the remaining debt is written off.
A detailed proposal is prepared and sent to your creditors. If 75% of those who vote, agree to the proposal, then all your creditors will be bound by it. HJS Recovery’s licensed Insolvency practitioners are then appointed as supervisors of the IVA.
Limitations of an IVA
An IVA will help release financial tension, and ease the pressure from your creditors. However you should be aware that whilst in an IVA, you will be restricted in the following ways:
- Your ability to obtain credit is strictly limited
- You will have a poor credit rating during the IVA, and for at least 12 months after the IVA
- If you default on your payments, this can lead to bankruptcy
- If you have equity in your home, then creditors may ask for this to be released to pay off some of the debt.
An IVA can be a very effective tool in helping you overcome your personal financial burdens. The proposal has to be representative of your situation and realistic in terms of what you can afford. HJS Recovery will be able to advise you if this is the best option for you.
Call now on 0800 0141 130 for a confidential discussion.