Interlocking IVA's - Process
IVA proposals are drafted for each separate partner but are principally the same and are likely to provide for all unsecured creditors to receive the same percentage of their debt to be paid back in consideration for them agreeing to the proposals.
The terms of interlocking IVA's are put forward to all creditors (whether business or personal) in a document called proposals. The proposals are lodged into Court and all the creditors receive a copy. If the partners' personal or business assets are at risk because of action taken by creditors, we can apply to court for Interim Orders, which means that creditors cannot commence or continue with any action against your personal or business assets unless the Court permits them to do so.
A meeting of creditors is convened to consider the interlocking proposals of both debtors. Creditors are able to vote on whether to accept, alter or reject the proposals. As long as your proposals demonstrate a genuine desire to repay as much of your debt as you can afford, it is likely that creditors will accept your interlocking IVA's. It is our role to guide you on what creditors will find acceptable.
Once your interlocking IVA's are approved all interest and charges on your unsecured debt is frozen. Also due to the fact that an IVA allows you to repay a proportion of your debt, then as long as you both adhere to the agreed terms, the remaining balance of your debt will be written off.
The Next Step
The options for a financially distressed business need to be very carefully considered. Simply forward your details on our Contact Form and we will contact you. Alternatively ring us on our FREE ADVICE LINE 0800 781 0990.
All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to advise and administer the most appropriate action - all fees will be outlined during your consultation. Retained payment may place you further into arrears. The Business Debt Advisor complies with the Consumer Credit Act and you have the right to a cooling off period of 7 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term.