The IVA or debt management
plan will be carefully compiled by an insolvency practitioner (or I.P.)
who will be properly qualified and be very familiar with debt management
IVA help. All the debt and the total number of creditors will be considered.
Income and expenditure of the client will also be considered and a monthly
or weekly expenses list will be compiled with the agreement of the client
and the creditors. Important bills will be paid before any creditors.
The total capital sum may be cut in this way by sixty per cent or more,
and the excess income of the client is set aside every month to service
any remaining debt in this structured way and on a much reduced basis
IVAs or individual voluntary
arrangements are normally set to run over a 60 month term, though it
can be adapted to meet with individual specifications. In Scotland,
where these are known as protected trust deeds, the span is generally
three years but may be four or five years. In both the Individual voluntary
arrangement and the protected trust deed the client is protected from
aggressive creditors by the insolvency laws and their debts are totally
and utterly removed at the end of the period (however long that may
be set to run).
It is true that use of debt
management IVA help can help people reorganise their lives. It is a
carefully structured plan devised to help ordinary people out of pressing
financial difficulties and brought about by the government in the 1980s
to complement the existing relatively unforgiving bankruptcy laws which