123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Iva Variations

Profile Picture
By Author: Wade Frazier
Total Articles: 37
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

An IVA (Individual Voluntary Arrangement) is an insolvency solution, designed for people with an unmanageable level of unsecured debt that they can't afford to repay within a

reasonable amount of time but that they can commit to making regular monthly payments towards.

An IVA is designed to get borrowers out of debt in (in most cases) 5 years. You will be required to pay most of your disposable income (total income minus essential expenditure)

to your IP (Insolvency Practitioner), who will subsequently distribute funds amongst your unsecured creditors according to how much you owe each of them (this is called a pro

rata payment).

A potential problem with IVAs is that no-one can guarantee their financial circumstances will stay the same. However, if you are as sure as you can be that your circumstances

won't change significantly over the next five years, then entering an IVA may be something to consider.

What if my circumstances change?
Even so, anyone's circumstances can still change in unexpected ways, and if this happens to you, it could affect your ability to ...
... make payments to your IVA.

If a big change in your circumstances does occur while your IVA is in progress, then an 'IVA variation' might work out for the best - for both you and your creditors.

Basically, an IVA variation is a new proposal that shows what changes you'd need to make to the way you're repaying your debt - so you can still bring the IVA to a successful

conclusion, even though your circumstances have changed.

How does an IVA variation work?
Your IP is responsible for representing and supporting you throughout the entire duration of your IVA. Their job is to act in the best interests of both you and your creditors.

If your circumstances do change, this may involve negotiating for an IVA variation.

If your Insolvency Practitioner feels an IVA variation is the best way forward, they will work with you to draw up a new proposal, which will be sent to your creditors for them

to review.

Like your original IVA proposal, voting creditors who collectively 'own' at least 75% of your overall debt must approve the terms of your new proposal for the IVA variation to

go ahead.

However, if the IVA variation is rejected, and you can't agree on a compromise, then the agreement will fail. In this case, you may want to choose a different debt solution,

such as a debt management plan or bankruptcy.
To find out more about an IVA variation - or more more information about how an IVA works, visit http://www.iva-forum.com/ for more information.

Total Views: 295Word Count: 435See All articles From Author

Add Comment

Investing / Finance Articles

1. Know About Property Investment Opportunities In Brisbane
Author: Rick Lopez

2. Influencer Marketing Agency In India
Author: BigWig Digital

3. Understanding Equity Release: A Guide To Unlocking The Value Of Your Home
Author: Finance Advisors

4. Surplus Funds: How To Uncover And Recover Your Lost Assets From Tax Sales
Author: Golden Refund Retrievers

5. The Best Property Investment Options In Australia
Author: Rick Lopez

6. Introducing The Amazing Bridging Loans Finance Lenders
Author: Bull Venture Capital

7. Top Benefits Of Small Business Loans In Hyderabad’s Growing Startups
Author: anilsinhaanni

8. Multifamily Loans For Amazing Experience
Author: Bull Venture Capital

9. How To Build A Website For Business?
Author: BigWig Digital

10. Best Healthcare Stocks In India 2025
Author: Close Friends Traders

11. Online Reputation Management Services For Business Growth
Author: BigWig Digital

12. Smart Strategies For Leveraging Real Estate Investment Opportunities
Author: Rick Lopez

13. What Are The Benefits Of Long-term Investing In 2025?
Author: Close Friends Traders

14. Why Should You Hire A Digital Marketing Agency In 2025?
Author: BigWig Digital

15. Top Benefits Of Using Superannuation For Property Investment
Author: Rick Lopez

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: