IVA Advice and Services Midlands Rugby Warwickshire
IVA Rugby, Warwickshire, Midlands from Bridge Newland
An IVA is an alternative to Bankruptcy and is therefore a process available only to individuals, partnerships or sole traders. Bridge Newland can give advice and help in this regard, with our specially trained employees based in Rugby, Warwickshire, in the Midlands area.
It is a legally binding contract between the insolvent party and their creditors whereby typically the insolvent party repays between 25% and 100% of its debts over a period of 3-5 years.
The terms of this contract are as proposed by the insolvent party and approved by the creditors at a meeting of creditors. This meeting must be held at a place convenient to where the creditors of the insolvent company are based therefore if in the Midlands, the creditors meeting is likely to be held at our Midlands office in Rugby, Warwickshire.
In excess of 75% (by value) of the creditors who vote need to approve the proposals to get an IVA passed.
The main advantages of IVA’s are…
- Any individuals that do an IVA avoid a loss of their professional qualifications (this is not avoided in a Bankruptcy process)
- There is arguably less stigma using this process rather that Bankruptcy
- There is often a better return to your creditors
- If you are a sole trader or Partnership an IVA allows you to trade on and retain control.
- It is possible to obtain court protection from your creditors either commencing or continuing with any legal actions, this is called a moratorium.
- All creditors who are entitled to vote are bound by the arrangement (whether or not they voted).
The main disadvantages of IVA’s are…
- It is often difficult to obtain consent to the proposals given the level of creditors needed to support the process and the fact that H M Revenue & Customs have strict guidelines set, for IVA proposals to comply with, before they offer their support to the arrangement.
- The process can be costly given the level of work required to draft the proposals.
- Success rates can be poor given the high burden of paying ongoing profits into an arrangement for up to 5 years.
For personal debt advice or to propose an IVA call our Midlands office in Rugby, Warwickshire free on 0800 612 6197 to arrange an initial no obligation meeting or fill out our contact form below