Daniel Chandler - Debt Management Consultants - Individual Voluntary Arrangements

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CONSUMER CREDIT LICENCE NO.
418964

The Daniel Chandler Approach
Individual Voluntary Arrangements (IVA) or Trust Deeds (Scotland only)

Choosing an IVA or Trust Deed is only likely to be useful if you have an income or assets but for some reason cannot persuade creditors to accept an equal distribution or partial write off of your debts.

An IVA or Trust Deed allows common sense to prevail, particularly when someone needs to remain in business to be able to pay creditors or sell assets.

An IVA or Trust Deed allows you to get creditors off your back paying them (perhaps only in part) over several years. You will need an insolvency practitioner to arrange this for you. A typical fee is in the range of £1,500 -£2,500 plus Vat.

Advantages

There is not the stigma or publicity that surrounds bankruptcy.
A business can continue to trade and generate income.
The arrangement can be tailored to your situation.
Administration costs should be lower than bankruptcy.
Creditors can still claim tax relief against bad debt as in bankruptcy.
Creditors can take little further action against you and are likely to accept less.
You can still be a company director and use any business name.

Criteria

Individual Voluntary Arrangement
(IVA)

The client should usually owe a minimum of £20,000 to at least 4 separate creditors.
The client should be able to comfortably afford to make minimum monthly payments of £200 per month into the IVA for 5 years.
The IVA must achieve a minimum dividend of 25 pence in the £ to non-preferntial creditors, after the costs and expenses of the IVA.
Creditors will expect that any monthly payments for motor vehicle finance be paid into the IVA after the final payment under the agreement has been made ( unless there is a good reason why it cannot be paid into the IVA such as the vehicle will need to be replaced).
Creditors will expect that a percentage (usually 75%) of the client's interest in any equity in a property will be raised and paid into the IVA at the end of the IVA.
An IVA may also avoid bankruptcy after a bankruptcy petition has been issued and even remove someone from bankruptcy after a Bankruptcy Order has been made.

Trust Deeds (Scotland only)

Separate Trust Deeds must be established for each person (there are no joint Trust Deeds for a husband and wife) and joint surplus income is usually divided on a pro rata basis according to each person's income.
The client should usually owe a minimum of £7,500 to their unsecured creditors.
The client should be able to comfortably afford to make minimum monthly payments of £175 per month into the Trust Deed for 3 years.
Full & final settlement Trust Deeds are possible without a 3-year duration (if there is no significant surplus income).
The Trust Deed must achieve a minimum dividend of 10 pence to the £ to non-preferential creditors, after the costs and expenses of the Trust Deed (approximately £4,000).
Any monthly payments for motor vehicle finance must be paid to the Trust Deed after the final payment under the agreement has been made (unless there is good reason why it cannot be paid into the IVA such as the vehicle will need to be replaced).
The client's interest in any equity in a property will be raised and paid into the Trust Deed.
Generally not suitable for self-employed persons.
Endowment policies that are not assigned to a mortgage provider will usually be surrendered and paid into the Trust Deed (if they are assigned they will be taken into account when calculating the equity in a property).

If you think an IVA or Trust Deed is an option, please apply now.

Apply Now for an IVA or Trust Deed On-line - It's quick, secure, easy and convenient.

Now that you have decided that this is the option that you wish to take, please follow these simple procedures.

	Fill out the on-line application form.
	Upon receiving your application, an Insolvency Management Specialist will contact you within 24 hours to find the best way we can help you and answer all of your questions.
	We will then forward the appropriate documentation to you that will allow us to start your IVA/Trust Deeds programme.

We will deal with your request in the strictest confidence.