The History Of The IVA
IVA's were introduced in 1986 by the Government as an alternative to bankruptcy. Prior to this there was little choice for people struggling with debt, they either muddled through or declared themselves bankrupt.
The Individual Voluntary Arrangement (IVA) is part of the Insolvency Act of 1986 and as such is a legal statutory debt help tool that can be used to help individuals that have become over-indebted. Presently, the Government is promoting this debt option more to consumers since it is such an effective tool to use to get out of debt.
IVA proposals can only be put together and presented to an individual's creditors by a licensed Insolvency Practitioner. At the time of this writing there are only about 2000 licensed Insolvency Practitioners in the UK.
IVA's were originally designed to provide relief to debts generated as a result of business insolvency. In recent years, increasing levels of consumer debt has led to many insolvent individuals with non-business generated debts seeking the legal protection offered within an IVA.
Creditor
Someone you owe money to.
Unsecured lending
Total loan & credit card debts excluding your mortgage and any hire purchase.
Country
The country you currently live in.
Insolvency Practitioners
Also known as an IP, a person who specialises in formal insolvency cases.
Valuations
The process of determing the current value of an asset.
Equity
The difference between the market value of a property and the claims held against it.
Lender
Someone you owe money to.
Eviction Order
A court order by which a person may be evicted.
Arrears
An unpaid and overdue debt.
Disposable Income
The amount of income left to an individual after taxes have been paid, available for spending and saving.
Statement of Affairs
A financial report showing assets and liabilities at expected liquidation values and shareholders' equity.
Insolvent
Unable to meet debt obligations.
Secured Loan
Money borrowed using goods or property as a guarantee.