PAO DEBT MANAGEMENT ACCOUNTING LIMITED
平安債務管理會計事務所
Individual Voluntary Arrangements (IVA) are a type of arrangement that provides individuals facing bankruptcy with another option to deal with their debts. The debtor needs to entrust a professional approved by the court to propose a specific and feasible repayment plan to the creditors. The plan must be agreed by at least 75% of the creditors to take effect.
Individual Voluntary Arrangements (IVA) are a type of arrangement that provides individuals facing bankruptcy with another option to deal with their debts. The debtor needs to entrust a professional approved by the court to propose a specific and feasible repayment plan to the creditors. The plan must be agreed by at least 75% of the creditors to take effect.
Individual
Voluntary
Arrangements
The types of debt that can be restructured with an IVA service include:
People with stable income
The total amount owed exceeds 10 times the monthly salary
Professionals or people working in the financial industry
People who are concerned about reputational damage
Features of the Individual Voluntary Arrangement Scheme
IVA applicants only need to submit all relevant documents and can usually arrange to take an oath at a law firm within seven to ten days. After the application, relevant creditors, such as banks and financial companies, will be notified the next day, which can quickly avoid harassment from debt collection companies or debt collectors. When conducting IVA debt restructuring, recognized legal representatives and accountants will analyze the personal and financial situation of the debtor to help the debtor effectively reorganize the debt and propose a new repayment plan to the creditors and the court. A creditor meeting is required to conduct further negotiations based on the proposed repayment plan. When a new repayment agreement is reached, a court order will be obtained, and the debtor must comply with the new repayment plan and repay all debts in full. The advantage of this arrangement is that after an IVA, the debtor's repayment interest rate is usually greatly reduced by up to 80%, allowing the applicant to get out of trouble and regain control of his finances.
Benefits of IVA
IVA debt restructuring has many benefits. After choosing to make a voluntary personal arrangement, the applicant can not only effectively reduce the financial and psychological burden, but also avoid negative impact on their credit reputation and even affect their work. Especially for professionals who handle financial property and need professional qualifications or authorization, IVA is the best debt handling solution.
01
Avoid stigma
Restructuring your debts through an IVA can help you avoid a dead end and allow you to carry on with your daily life without restrictions.
02
Retain professional qualifications
After conducting an IVA, the applicant's professional license will not be revoked, which is particularly suitable for professionals.
03
Current job is not affected
04
Reduce interest rates
IVA applicants can continue to serve as company directors, management and run the business.
An IVA specialist will prepare a repayment proposal based on the debtor’s repayment ability, which can usually reduce interest payments and lower the overall monthly repayment amount.
An IVA is a voluntary agreement between a debtor and creditors and is less damaging to a person's reputation than bankruptcy.
Unlike bankruptcy, where all your assets go to the trustee, who will usually sell off your major assets to pay off your debts, with an IVA your home and major assets do not necessarily have to be sold off.
An IVA will have less impact on professional or employment qualifications than bankruptcy, which can have a significant impact on a professional’s career. An IVA allows you to continue to be a company director or run a business, which is not allowed in bankruptcy.
If you complete repayments according to the IVA agreement, you will have a greater chance of successfully applying for a loan in the future.
Bankruptcy proceedings can be costly and time-consuming.
Through an IVA, a creditor may be able to get more money back from their debtor.
Disadvantages of an IVA
1
Longer repayment period
It usually takes longer to complete an IVA than a bankruptcy, especially if the bankrupt cooperates fully with the Official Receiver or Trustee.
2
Risk of bankruptcy litigation
If there is no realistic prospect of concluding an IVA, you may still be at risk of bankruptcy proceedings.
Application Procedure
Step 1: Prepare application documents
Step 1: Prepare application documents
Day 1
As the first step in the debt restructuring process, the debtor needs to prepare the IVA application documents, detailing the debt information (such as loan contracts, contribution tables, etc.) and income proof (such as salary slips, payroll records), and submit them to our members. Our members will consult and analyze their debt restructuring cases in detail. If the debtor meets the qualifications and is suitable for the IVA debt restructuring plan, our members will appoint an accountant as a nominee to formulate a new IVA individual voluntary arrangement repayment proposal plan.
Step 2: Prepare an affidavit
Day 15
Step 3: Court Hearing
Debtors who are going through an IVA will meet with a lawyer arranged by a member of the Association and prepare an affidavit. The lawyer will then apply to the court for an interim order.
Day 60
The court will hold a hearing on the application for an interim order and formally make an interim order.
Step 4: Notice of Creditors' Meeting
Day 75
The debt restructuring process requires the issuance of a notice of a creditors' meeting, along with the date and relevant information of the meeting.
Step 5: Creditors Meeting
Day 90
A formal meeting is held with creditors for negotiation. If more than two-thirds of the creditors or their representatives vote in favor, the debt restructuring plan can be passed.
Step 6: Implement debt restructuring conditions
Day 100
Implement the conditions and plans for debt restructuring. The debtor will pay the nominee on time, and the nominee will release the money to the creditor according to the distribution ratio. The debtor will repay the nominee every month, and the nominee will arrange the repayment to the creditor.
