HJS Recovery will take formal steps to agree a repayment method with your creditors, which is legally binding on them. 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 provided 75%, by value, of creditors that vote agree to the proposal, then all the 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:

• Whilst in the IVA 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 advise you if this is the best course of action for you, will prepare the documentation and represent you.

To find out more about IVA and if this is right for you, click here to read the R3 publication. Call now on 0800 0141 130 for a confidential discussion.