Why do people use the expression ‘Government IVA‘ ?
After all, it isn’t the Government that process the IVA, so why do people link the Government with IVAs at all?
Well the reason that people refer to Government IVA is because IVAs form part of the 1986 Insolvency Act, which is an Act of Parliament.
As part of the 1986 Insolvency Act, the IVA forms part of the UK’s statute, which our Government protects and upholds as part of their duties to the Country.
So, to this degree, an IVA is supported by Government by the very nature of the IVA being part of UK law.
But what sort of protection does an IVA get through being a part of UK law ?
Well, changes to the statute require Parliament’s blessing, which is a function of our democracy, and therefore any changes will need to be put before Parliament for voting purposes. This requirement obviously creates pros and cons of its own, for such actions can take months and months to be approved, but it does create stability.
So the stability that the IVA benefits from, due to this lengthy process, are passed across to the people applying for IVAs, for they can be safe in the knowledge that their IVA will be legally binding, and without retrospective changes during their IVAs that might change the terms of their arrangement.
If you would like to explore the IVA process further, then take a look at our other IVA articles.
If you would like a free IVA consultation, then call My IVA Adviser for free on 0800 088 7503 now.
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