Standard Term Proposal
This is the most common of IVA proposals and suitable for people who have a sustainable repayment from their income each month to offer creditors. These are usually proposed over a period of usually 60 months and set out an affordable monthly payment to your debt, which is agreed with you using recognised guidelines for essential living expenses as well as accounting for all of your household bills before any offer of payment is reached.
It is possible to proposal cases under 60 months if you forsee a significant change in circumstances within the next 5 years, that would make you unable to maintain a payment to creditors. (For example: you are due to retire from work and anticipate a significant reduction in your income as you lose your salary and receive state pension). These proposals are more unusual and reviewed on a case by case basis.
One Off Settlement Proposal
These proposals are suitable for people that have very little to offer creditors from their income after all essential living costs are accounted for and would find it difficult therefore, to maintain monthly payments for any length of time but have a lump sum to offer their creditors from savings, sale of an asset or even a gift from a relative or friend. The amount that would be acceptable to creditors is dependent on your individual circumstances and would need to be considered on a case by case basis. But essentially, if it is the best you can offer and results in a fair return to creditors compared with alternatives it is likely to be accepted.
Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA. If your IVA fails, it could lead to Bankruptcy, although this is rare and alternatives may be available. Your ability to obtain credit will be affected for the medium to long term. Homeowners may be required to release the equity in their property, if unable to release equity and equity is available creditors may request an additional 12 months payments in compensation.
Financial Support Systems provides insolvency solutions to individuals, specialising in IVA's. We do not administer or provide advice solely relating to debt management products, such as Debt Management Plans. Advice and information on alternative options will be provided following an initial fact find were the individual(s) concerned meets the criteria for an IVA and wishes to pursue it further, as governed by our regulators Institute of Chartered Accountants in England and Wales. All advice given on any alternative options is therefore provided in reasonable contemplation of an insolvency appointment.
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