IVA

Yes, you can convert an IVA (e.g. you cannot meet the obligations of your payment plan for whatever reason) to a bankruptcy. You should be aware that in doing so you may lose some of your property.

On occasion, changed circumstances (e.g. divorce, unemployment, illness) will affect your ability to make payments. During such rocky times, notify your supervisor immediately. If your problem is temporary, the Supervisor may give some extra time in meeting your payment commitment. If it looks severe or long-lasting, the creditors may: modify the plan to deal with your changed circumstances; or discharge the rest of your debts on the basis of hardship; or convert to a bankruptcy case.

Which type of procedure really depends on your financial picture. Each has pros and cons.

An individual struck with serious financial difficulties most likely will continue

An IVA is a statutory procedure for individuals or partnerships who are in financial difficulties and insolvent. The procedure is broadly the same for both individuals and partnerships. continue

Though many people petition for bankruptcy to deal with their debts, just as many shy away from bankruptcy and consider other solutions to straightening out their debt problem. There are a number of different strategies for handling debt. continue

A debtor should approach an IP who will put together a proposal to put to the creditors. This Proposal together with a notice of meeting of creditors will be served on the debtor’s creditors. It is essential that the debtor is completely open and honest about his or her assets and liabilities. Failure to comply with this can have extremely serious consequences for the debtor. continue

An Individual Voluntary Arrangement ("IVA") is very similar to a CVA.

 A debtor, either as an individual or in conjunction with other debtors (e.g. a partnership) will make a proposal to his or her creditors. Typically this proposal will contain an offer to the creditors to pay only a percentage of the debt (a dividend). In some cases the full debt may be paid but this will typically be much later than when the debt would ordinarily be due to be discharged. continue

There are many solutions available in the UK for people struggling with debt.  One such option is an Individual Voluntary Arrangement (IVA) and recent figures suggest that IVAs are now more commonplace than bankruptcies in the UK.  continue