IVAs were introduced as part of the Insolvency Act of 1986 as an alternative solution for people who’s occupations prohibited them from using bankruptcy to clear their debt.
These occupations include Company Directors, Accountants, Lawyers, Police Officers, Royal Navy, Royal Air Force & Armed Service Personnel as well as Prison Officers to name but a few.
The IVA was also designed to encourage the entrepreneurial spirit within new businesses, by ensuring company directors were protected from bankruptcy should their business ventures fail.
Over the ensuing years IVAs became an incredibly powerful weapon in the fight against consumer debt, enabling tens of thousands of ordinary members of the public to be rescued from the burden of spiralling debt problems.
Because the IVA process forms part of the insolvency statute and therefore legally binds the creditors to the arrangement, individuals can benefit from the same legal protection that was originally designed to protect a much narrower community.
IVAs also come with other unique advantages that set it apart as a preferred option for thousands of people, such as the freezing of interest on all their debts and, although there are undoubted disadvantages that can be associated with the IVA, these disadvantages tend to be considered acceptable to the majority of applicants.
IVAs can only be used to help deal with unsecured debts, and unsecured debts typically include, Bank loans, Overdrafts, Credit Cards, Store Cards, Catalogue and Mail Order accounts, but can also include Unpaid Bills, Overpaid Benefits, Unpaid Inland Revenue and Over Due Tax bills too.
For further information about IVAs and to find out how an IVA might be able to assist you tackle your debts, call 0800 088 7504