One Off Payment Individual Voluntary Arrangements (IVAs) are an excellent way to clear a serious debt problem when you only have sufficient available funds to clear a proportion of the money you owe, and when a normal 5 year Individual Voluntary Arrangement (IVA) is beyond your reach.
One Off Payment Individual Voluntary Arrangements (IVAs) are also referred to as Full and Final Settlement Individual Voluntary Arrangements (IVAs).
However, the circumstances that need to be in place before the Full and Final settlement IVA can be considered appropriate are extremely rare.
This is because the debtor must have access to a sufficiently large ‘lump sum’ of money to offer to creditors, yet have very little money available each month to be able to offer creditors a monthly contribution.
Also, the offer contained in the Full and Final IVA needs to be a ‘…better or comparable offer to the dividend the creditors could expect if the debtor was to be made bankrupt.’
This adds a complication to the Full and Final IVA equation.
If the offer to creditors has to be an improvement on the return the creditors could expect from the debtor’s bankruptcy, it virtually removes the prospect of the debtor using equity that would be available in the event of his bankruptcy.
Read this article describing, in brief, the circumstances in which a Full and Final Settlement IVA maybe suitable.
For all other related articles on the IVA’s click here.
Alternatively, call My IVA Adviser for free on 0800 088 7503 to talk to one of our IVA specialists.
Related Articles:
- IVA : Full And Final Settlements And ‘One Off’ Individual Voluntary Arrangements (IVAs)
- IVA : What Happens If I receive A Windfall Payment during my Individual Voluntary Arrangement?
- IVA : How Does An Individual Voluntary Arrangement Work ?
- Voluntary Arrangements affect Attachment of Earnings
- IVA : Whats The Legal Position Of An Individual Voluntary Arrangement?