Lynn Marshall from our Turnaround & Insolvency team discusses some important points about IVAs:
- Determine whether an IVA is the best option
An IVA (Individual Voluntary Arrangement) may not be the only available option; therefore a full discussion should take place BEFORE any decision is made.
- Don’t consider an IVA in isolation
We frequently arrange to meet individuals to discuss options and are told that they will not consider anything other than an IVA. Any decision is yours, but all options should be considered based upon your unique situation.
- Avoid a blinkered view
Different options work best dependent upon individual circumstances e.g. whether you own a house, if you’re a Company Director or employed, and your area of work. Be prepared to listen to all options with an open mind as the one best suited to you may be a surprise!
- Be honest when seeking advice
Sometimes only half the story is provided at the initial meeting. The correct advice can only be provided if you explain everything. Discussing the value of your assets and exactly what you owe is absolutely necessary. Remember, the meeting is CONFIDENTIAL and we are there to provide you with the best advice.
- Look around – don’t just take one person’s opinion
Look at a variety of sources and obtain information from the internet, booklets and from different advisers. By seeking the opinion of more than one person, you can decide who would be best to work with. You need to be able to trust the individual and the firm that they work for – make sure that they are right for you.
- Consider what is important to you
It is vital to consider what is important to you and to make sure your priorities are known. Do you want to save your property or were you thinking about moving? Do you need to be a Company Director – if so, how important is this to you? By thinking about all of these things, your options may change and something that was previously unavailable may suddenly become free.
- Know that you may not get everything you want
You may have a wish list or a particular process that you want to consider, but it may not always be possible. Know that we will provide the best advice for your circumstances and that our advisers will always consider your needs.
- The art of compromise
Any insolvency process usually involves a compromise. If an IVA is considered, creditors will usually be compromising on their debts. They will then expect to receive as much as is feasible and will therefore expect you to compromise on what you can retain. In the event of other options, negotiation will also be necessary whether this relates to the amount of monthly surplus you can retain from your salary or whether you can keep your home.
- Pride doesn’t pay the bills
I have given countless advice to clients over the last 24 years in regards to debt and insolvency. On numerous occasions there have been no discussions with relatives and friends, who have sometimes indicated that they would have helped if they’d known about it. It can be an uncomfortable topic of conversation, but it is one which may be worth having.
- Remember you are not the only one!
You are not alone and while it may feel that way, there are countless people who are prepared to help and to provide you with the correct advice. The first step is a call or an e-mail to start a discussion with an appropriate adviser. Simply obtaining the required information will not eradicate the problem, but it will make it more manageable and easier to deal with.
For further advice about whether an IVA is the right choice for you, please contact Lynn Marshall on 0191 285 0321 or email email@example.com