An Individual Voluntary Arrangement (IVA) is a legally binding agreement between an individual and their creditors to repay debts over a fixed period of time. It is a formal alternative to bankruptcy and allows individuals to make affordable monthly payments based on their income and expenditure.

Once an IVA is approved, a licensed insolvency practitioner acts as a supervisor and negotiates with creditors on behalf of the individual. A proposal is made to repay a portion of the debts over a set period, usually five years. If approved by creditors, the individual makes regular payments to the supervisor, who distributes the funds among the creditors.

An IVA is suitable for individuals who have unsecured debts, such as credit cards, personal loans, or overdrafts, and are struggling to meet their repayments. It is typically available to residents of England, Wales, and Northern Ireland who have a stable income and owe a minimum amount of debt, usually around £6,000.

Yes, entering into an IVA will have an impact on your credit rating. It will be recorded on your credit file for six years from the date it starts. This may make it more difficult to obtain credit during this period. However, an IVA can also provide an opportunity to rebuild your credit rating by demonstrating responsible financial behavior.

Most unsecured debts can be included in an IVA, such as credit cards, personal loans, store cards, and overdrafts. However, certain debts, such as secured loans, court fines, student loans, and child support payments, cannot be included.

It is crucial to make regular payments as agreed in the IVA. If you miss a payment, it could be considered a breach of the arrangement, and your creditors may take legal action against you. It is essential to communicate any difficulties with your supervisor as soon as possible to explore potential solutions.

In most cases, you can keep your assets, including your house and car, while in an IVA. However, if you have significant equity in your property, you may be required to release some of it to repay your creditors. Each case is unique, and it is best to discuss your specific circumstances with your insolvency practitioner.

Yes, you can continue to run your business while in an IVA. However, if you are a sole trader, your business income and expenses will be considered as part of the IVA proposal. It is important to disclose all relevant information about your business to your insolvency practitioner.

To start the process of setting up an IVA, you should seek advice from a licensed insolvency practitioner. They will assess your financial situation, discuss the suitability of an IVA, and guide you through the necessary steps to propose the arrangement to your creditors.

A MAPP will have no affect on any current mortgage.

A Debt Relief Order (DRO) is a formal insolvency procedure designed to help individuals in England, Wales, and Northern Ireland who are struggling with unmanageable debt. It provides a legal solution to individuals with low income, minimal assets, and debts below a certain threshold.

A Debt Relief Order freezes your debts for a specified period, usually 12 months, during which your creditors cannot take any legal action against you. If your financial situation does not improve during this period, your debts may be written off entirely, providing you with a fresh start.

To be eligible for a Debt Relief Order, you must reside in England, Wales, or Northern Ireland, have debts below £50,000, have minimal assets, and have disposable income of less than £75 per month. You must also not have been subject to any other insolvency procedure in the last six years.

To apply for a Debt Relief Order, you must seek assistance from an approved debt adviser. They will assess your financial situation, help you complete the necessary application forms, and submit them to the Insolvency Service on your behalf.

A Debt Relief Order covers most types of unsecured debts, including credit cards, personal loans, overdrafts, utility bills, and rent arrears. However, certain debts such as student loans, court fines, child support, and secured debts (e.g., mortgages) are not included.

A Debt Relief Order typically lasts for 12 months. During this period, you must comply with certain obligations, such as making regular payments towards your debts if you have disposable income. After the 12-month period, if your financial situation has not improved, your debts may be discharged.

While a Debt Relief Order can provide significant relief from debt, it is important to note that it will have an impact on your credit rating. It will be recorded on your credit file for six years, making it challenging to obtain credit during this time. Additionally, it may affect your ability to hold certain positions, such as being a company director.

Yes, self-employed individuals can apply for a Debt Relief Order. However, there are specific criteria and considerations that need to be met, such as ensuring your business assets and liabilities are appropriately separated from your personal finances.

No, you cannot include joint debts in a Debt Relief Order. If you have joint debts, the responsibility for the debt will fall solely on the other party, and they will still be liable for the full amount.

In general, it is not possible to cancel or revoke a Debt Relief Order once it has been granted. However, there are exceptional circumstances where the court may consider revoking the order, such as if it was granted based on false or misleading information. It is advisable to seek professional advice if you believe your situation warrants such action.

It is generally not possible to cancel an IVA once it has started. However, if you are facing extreme financial difficulties, you can discuss your situation with your insolvency practitioner, who may be able to propose an alternative solution.

Bankruptcy is a legal process that allows individuals or businesses to declare themselves unable to repay their debts. It is a formal insolvency procedure aimed at providing relief to those overwhelmed by debt.

Determining whether bankruptcy is the right choice for your financial situation requires careful consideration. It is advisable to seek professional advice from a licensed insolvency practitioner who can assess your circumstances and provide guidance tailored to your specific needs.

To file for bankruptcy in the UK, you must submit an application to the court. This can be done either online or by completing the necessary forms and sending them to the appropriate court. It is crucial to follow the correct procedures and provide accurate information to avoid any complications.

Bankruptcy has several implications, including the potential loss of assets, restrictions on obtaining credit, and limitations on certain professional roles. It is essential to understand the consequences before proceeding with bankruptcy, as they can have a significant impact on your financial future.

In the UK, bankruptcy typically lasts for a period of one year. However, the overall duration can vary depending on individual circumstances. After the bankruptcy period, you may be discharged, but certain restrictions may still apply.

Bankruptcy aims to provide a fresh start by discharging most of your debts. However, not all debts are automatically included, such as student loans, court fines, child support, and certain tax obligations. It is crucial to seek professional advice to understand which debts can be discharged in your specific case.

The assets you can retain during bankruptcy depend on their value and your individual circumstances. Some assets, such as essential household items and tools necessary for your employment, may be exempt. However, high-value assets, such as property or luxury items, may be sold to repay creditors.

Yes, bankruptcy will have a significant impact on your credit rating. It will remain on your credit file for six years, making it challenging to obtain credit during this period. However, it is possible to rebuild your credit rating over time by demonstrating responsible financial behavior.

Running a business while bankrupt is possible, but certain restrictions apply. You may need to inform your customers and suppliers about your bankruptcy status, and there may be limitations on acting as a director or managing a company. Seeking professional advice is crucial to understanding the specific restrictions that may apply to your situation.

If you live outside the UK but have significant connections to the country, you may still be eligible to apply for bankruptcy. However, it is advisable to consult with an insolvency practitioner or legal professional to understand the specific requirements and implications in your situation.