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3 minute read
All About IVAs
A question we get asked a lot at Debt-Claims. com is what is an IVA? Read on to find out.
Individual Voluntary Arrangement (IVA), provides debt relief by enabling individuals to agree on a repayment plan with their creditors.
Managed by an insolvency practitioner, the IVA ensures that a portion of the debt is repaid over a fixed period, usually five to six years, after which any remaining unsecured debt is written off.
What is an IVA?
An Individual Voluntary Arrangement is a formal insolvency procedure that allows individuals to repay their creditors over an agreed-upon time frame, typically based on their ability to pay. The primary purpose of an IVA is to offer a structured repayment solution for individuals who are facing significant financial distress but want to avoid the more severe consequences of bankruptcy.
An IVA is overseen by an insolvency practitioner (IP), who acts as an intermediary between the debtor and their creditors. The IP works to create a proposal outlining the debtor's financial situation, including their income, expenses, and assets.
The proposal also details how much the individual can afford to repay each month and over what period. The creditors then vote on whether to accept the IVA proposal. If 75% (by value of debt) of the creditors agree, the IVA becomes legally binding on all creditors, including those who did not vote or who voted against it.
4. Ensure Consistency in Dismissal Decisions
5. Provide the Employee with the Right to Appeal
How can employers protect themselves against unfair dismissal claims?
Employers can take several steps to protect themselves from unfair dismissal claims and ensure the process is followed correctly. These include:
1. Have Clear Disciplinary and Grievance Policies
2. Train Managers on Fair Dismissal Procedures
3. Keep Detailed Records
4. Seek Legal Advice
5. Review and Update Employment Contracts
Concluding comments
Unfair dismissal is a serious issue in employment law, and failing to follow the correct procedures can lead to costly tribunal claims. Employers must ensure that they have a valid reason for dismissal, follow a fair process, and provide employees with the opportunity to appeal. By implementing clear policies, training managers, and keeping thorough records, employers can protect themselves from unfair dismissal claims and ensure that dismissals are handled fairly and legally.
If you require legal advice concerning unfair dismissals, please call our office today on 02476 231000 or email enquiries@askewslegal.co
Please note that this article is for information purposes only and does not constitute legal advice.
Who Can Apply for an IVA?
Not everyone qualifies for an IVA. This debt solution is primarily for individuals who have significant debts but can still afford to make regular payments. Generally, an IVA is suitable for individuals who:
Have unsecured debts exceeding £10,000
Have multiple creditors
Can afford to make regular monthly payments based on their income and essential expenses
Have a stable income that ensures they can maintain the repayment schedule over the duration of the IVA
It is important to note that an IVA does not cover secured debts, such as mortgages or car loans, and individuals must still meet these obligations separately from their IVA payments.
Advantages of an IVA
For individuals struggling with unmanageable debt, an IVA offers several key benefits:
Avoids Bankruptcy
• Legal Protection from Creditors
Debt Write-Off
• Fixed Monthly Payments
Disadvantages of an IVA
Despite its advantages, an IVA is not without its downsides, and individuals should carefully consider these before proceeding:
Impact on Credit Rating Failure to Keep Up with Payments
• Cost
• Recorded as a Public Record
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Concluding comments
An Individual Voluntary Arrangement (IVA) is a formal debt solution that allows individuals to repay their debts over a fixed period while avoiding bankruptcy.
While an IVA offers many benefits, including legal protection from creditors and the potential to write off remaining debt, it is not without its drawbacks. Individuals considering an IVA should carefully weigh the advantages and disadvantages and consult with an insolvency practitioner to determine whether it is the right solution for their financial situation.
For many, an IVA can provide a pathway to regaining financial stability and a fresh start, but it is essential to enter the process with a clear understanding of the commitments and consequences involved. If you require legal advice concerning unfair dismissals, please contact the team at www.Debt-Claims.com
Please note that this article is for information purposes only and does not constitute legal advice.