Out Of Debt Iva

Latest statistics concerning IVAs in the last year have shown they are to be the way out of debt for an increasing number of people.

A record number of homeowners have been left in the red after a difficult 2006, with unemployment and utility bills both on the rise in the UK – a fact reflected in 110,000 personal insolvencies for the year.

IVA's have more than doubled over the last year and are predicted to do the same again by 2009 which mean they are the most widely accepted way that people can resolve their debt problems!

Record Ivas

The number of people applying for an IVA will reach almost 30,000 in the first three months of 2007 alone.

This is according to research by financial advisors Grant Thornton.

The simple conclusion is that as money available becomes tighter but spending increases, it is inevitable that more people and more people will have debt problems and could be suitable for an IVA.

They do not expect the situation to improve adding: “At present, there are simply not the conditions in place to expect a sudden drop.”

Bad Credit

Debt Management – Helping your manage debt more effectively. At Debt Counsellors we believe in finding the best debt management programme for your needs, not ours. Whether it's an IVA, Debt Management or secured loans, we will give the best debt advice for your needs.

Debt Counsellors is part of debts.co.UK PLC and as such we have a full range of debt solutions, therefore we can offer impartial advice to help you manage your debt problem.

Company Arrangement

A company voluntary arrangement (CVA) can allow your company to continue in business despite debts and insolvency.

A company voluntary arrangement is used to rescue companies which are insolvent yet have an underlying business that would be profitable in the future without having old debts holding it back.

A proposal is drawn up by the directors or if the company is in liquidation or administration the liquidator or administrator. The proposal must name an Insolvency Practitioner who will act as nominee and will call meetings of the members and creditors. The nominee also reports to the court on whether in his opinion a meeting of members and creditors should be called to enable them to consider the proposal.
The proposal takes effect and is binding on all creditors who had notice and were entitled to vote at the meeting if it is accepted by a majority of the members and in excess of 75% in value of creditors present and voting.

A supervisor is appointed at the meeting of creditors to administer the arrangement. His duties and powers will be set out in the voluntary arrangement.

Administration

An administration order is made by a court on the petition of the company, the directors or a creditor to appoint an Administrator to manage the affairs, business and property of the company for the duration of the order. The administration is sought for any of the following purposes:

  • The survival of the company and the whole or any part of its undertaking as going concern.
  • The approval of a voluntary arrangement.
  • The sanctioning of under CA 1985, S425 of a compromise or arrangement between the company and any such persons as are mentioned in that section.
  • A more advantageous realisation of the company assets than would be effected on a winding-up.

Administration will take the pressure of the creditors off the company to give it time to work out a scheme to pay creditors.
During the period in which an administrative order is in force:

  • No resolution may be passed or order made for the winding-up of the company. No administrative receiver of the company may be appointed.
  • No other steps may be taken to enforce any security over the company's property , or to repossess goods in the company's possession under any hire-purchase agreement, except with the consent of the administrator or the leave of the Court.
  • No other proceedings and no execution or other legal process may be commenced or continued and no distress be levied against the company or its property except with the consent of the administrator or the leave of the Court.

Administration is a costly procedure as it involves the costs of an Insolvency Practitioner and Solicitor at the commencement of the procedure and during the course of the Administration, and of course the supervision of the court.