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IVA : Full And Final Settlements And 'One Off' Individual Voluntary Arrangements (IVAs)
An Individual Voluntary Arrangement (IVA) does not necessarily have to last 5 years, indeed, under the correct circumstances it is possible to arrange an Individual Voluntary Arrangement (IVA) that begins and ends with only one payment being made. This is sometimes referred to as a 'Full and Final' settlement Individual Voluntary Arrangement (IVA) or a 'One Off' Individual Voluntary Arrangement (IVA).
The initial process is the same as a standard Individual Voluntary Arrangement (IVA), with the debtor providing all the relevant details to an Insolvency Practitioner.
During the preparations for a Full And Final Settlement Individual Voluntary Arrangement (IVA) it is likely that the Insolvency Practitioner would request that the settlement funds are transferred over to his or her client account, and held there until the Individual Voluntary Arrangement (IVA) payment is made to the creditors as soon as the Individual Voluntary Arrangement (IVA) has been agreed.
Normally, the circumstances which tend to favour the Full And Final Settlement Individual Voluntary Arrangement (IVA) option are when the debtor has very little disposable income, but has access to releasable equity from a property, or when a debtor has very little, if any, disposable income but knows a third party that is willing to introduce a large lump sum on their behalf into the Full And Final Settlement Individual Voluntary Arrangement (IVA).
All benefits of an Individual Voluntary Arrangement (IVA) still stand, but there is a reduction in the fees that the Insolvency Practitioner will charge to the creditors, thus increasing the appeal of the Full And Final Settlement Individual Voluntary Arrangement (IVA) to them. The reduced fees are as a result of there being no need for the Insolvency Practitioner to supervise the Individual Voluntary Arrangement (IVA) for the normal 5 years.
For more information on Full and Final settlement Individual Voluntary Arrangements (IVAs), call myIVA-Adviser.com for free on 0800 088 7503 where you can discuss your circumstances with an experienced Individual Voluntary Arrangement (IVA) adviser.
Or click here for a full explanation of the standard IVA Solution.
