People with relatively low liabilities, little surplus income and few assets and who are unable to pay off their debts in a reasonable time.
What are the requirements for a debt relief order?
The requirements will be detailed in secondary legislation which is not yet in force, but it is anticipated that the following will apply:
The debtor is unable to pay his/her debts;
The debtor’s total unsecured liabilities must not exceed £15,000;
The debtor’s total gross assets must not exceed £300;
The debtor’s disposable income, following deduction of normal household expenses, must not exceed £50 per month.
The debtor must be domiciled in England or Wales, or in the last 3 years have been resident or carrying on business in England or Wales.
The debtor must not have previously been subject to a DRO within the last 6 years.
The debtor has not entered into a transaction with any person at an undervalue during the last two years.
The debtor has not given a preference to any person in the last two years.
The debtor must not be involved in another formal insolvency procedure at the time of application for a DRO, such as:
An undischarged bankrupt;
A current Individual Voluntary Arrangement;
A current Bankruptcy Restrictions Order or Undertaking;
A current Debt Relief Restrictions Order or Undertaking;
An interim order
A current pending debtor’s bankruptcy petition in relation to the debtor but the debtor has not been referred to the DRO procedure by the court as a more suitable method of debt relief;
A current pending creditor’s bankruptcy petition against the debtor but the debtor has not obtained the creditor’s permission for entry into the DRO process.
Friday, 14 May 2010
Tuesday, 16 March 2010
What is an IVA?
What Is an IVA
The IVA (Individual Voluntary Arrangement) was introduced by The Insolvency Act of 1986 as an alternative to bankruptcy which benefits both the debtor and the creditor. An IVA enables people facing financial difficulties to come to a formal agreement with their creditors rather than having to face bankruptcy.
The IVA represents an exciting new opportunity to those facing serious debt to both avoid bankruptcy and to make a fresh start. In this article, we’ll answer the most frequently asked questions about the IVA.
What Are the Advantages of an IVA
- With an IVA you only pay back an agreed percentage of your debts
- While an IVA is in place, it is illegal for your creditors to harass you
- With an IVA, interest on your loan is frozen which means that your debt won't keep growing
- An IVA doesn't affect your professional status or ability to hold public office like bankruptcy does
What Are the Disadvantages of an IVA
- If you don’t stick to the terms of your IVA then the insolvency practitioner or your creditors can make you bankrupt.
- If your circumstances alter which means you can no longer afford the payments, your IVA may end if the insolvency practitioner is unable to convince your creditors to accept a new agreement.
How Do I Set Up an IVA
- With the help of an insolvency practitioner, you outline a debt repayment proposal which clearly demonstrates how it benefits your creditors and which shows what funds and assets are available for them.
- Then you apply to the court for an interim order. If this order is granted then the creditor cannot petition for bankruptcy.
- The creditors then meet to decide whether or not to accept your proposals.
- If the creditors approve your proposals, they are binding on everyone who had notice of the meeting. If this happens, the insolvency practitioner takes charge of the assets which are administered for the creditors in line with the proposals.
Who Might Benefit From an IVA
An IVA can help anyone experiencing debt problems- particularly those who own property which they would risk losing if they were to be made bankrupt.
An IVA might be a good idea for you if you if:
- You owe money to people or companies that wouldn’t agree to an informal debt management arrangement
- You’ve already tried an informal arrangement, but it’s failed.
Can I Get an IVA After I’ve Been Made Bankrupt
The Enterprise Act of 2004 introduced new rules on how to get an IVA after you are made bankrupt.
This involves applying for what’s called a Fast Track IVA by presenting a proposal to the Official Receiver.
If The Official Receiver thinks that your creditors would do better to accept an IVA rather make you bankrupt, he/she might agree to act as supervisor of the IVA. If the IVA is agreed by your creditors, your bankruptcy order will be annulled by the Official Receiver.
Where Will My IVA Details Be Stored
The record of your IVA is kept on a public register and anyone can search to see if someone has an IVA. Records of your IVA are also held credit reference agency files for up to six years.
Contact Manchester IVA for further advice
IIVA Manchester111 PiccadillyGreater ManchesterM1 2HX0844 357 4446
Friday, 12 March 2010
Help and debt advice for Mancunians
IVA and Bankruptcy in Manchester
Every month hundreds of people enter in to an Individual Voluntary Arrangement ( an IVA ) in Manchester alone.
An IVA can be a way of avoiding bankruptcy but often bankruptcy can be the best solution.
An IVA will typically last for 60 months bankruptcy 12 months.
We can quickly let you know if an IVA is right for your circumstances, beware of pressure selling from some IVA Companies in Manchester.
We advise you of your best solution. There is no charge for our advice, so pick up the phone and ask us anything about IVA or bankruptcy in and around Greater Manchester.
If you are paying your creditors more than you can afford you could really benefit from giving us a call on
0844 357 4446
Contact us now
We know how stressful debt problem can be. We understand the strain it puts on you personally and for your family personally and for your family.
We don't judge you; we are just here to help you.
We don't have a call centre so you will get through straight away to our highly trained and sympathetic advisors.
IVA Manchester
IVA Manchester111 PiccadillyGreater ManchesterM1 2HX0844 357 4446
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