Hanover Sterling Limited - IVAs
An IVA is a legally binding arrangement supervised by a Licensed Insolvency Practitioner, the purpose of which is to enable an individual, sole trader or Partner ("the Debtor") to reach a compromise with his creditors and avoid the consequences of bankruptcy. The compromise should offer a larger repayment towards the creditor's debt than could otherwise be expected were the Debtor to be made bankrupt.This is often facilitated by the Debtor making contributions to the arrangement from his income over a designated period or from a third party contribution or other source that would not ordinarily be available to a Trustee in Bankruptcy.Unlike the unregulated informal debt management products actively being marketed on radio and television, an IVA is legally binding and precludes all creditors notified and therefore included in the IVA from taking any enforcement action against the Debtor post-agreement assuming the Debtor complies with the his obligations in the IVA. Who can benefit from an IVA?An IVA is available to all individuals, Sole Traders and Partners who are experiencing creditor pressure and it is used particularly by those who own their own property and wish to avoid the possibility of losing it in the event they were made bankrupt