UK IVA's Explained : information and advice on IVAs - what IVAs are, how they work, pros and cons and FAQs about IVAs.
IVA Glossary
- Arrears - being behind in payments, such as the monthly payment required during an IVA.
- Assets - everything a person owns, such as a property and cash.
- Bankruptcy - A legally declared inability of an individual or organisation to pay their creditors.
- Creditor - A person or organisation to who money is owed or you borrow money from.
- Debtor - One who owes debt to another.
- Disposable income - All income remaining after all necessary expenses are made, such as mortgage, insurance, tax etc.
- Insolvency - The inability of an individual or organisation to pay its debts when they become due.
- Insolvency practitioner - A licensed specialist who advises on insolvency.
- Insolvent - A person not able to pay debts when they become due.
- Interim Order - Precludes bankruptcy and other legal proceedings whilst an IVA is being set up.
- IVA - Individual Voluntary Arrangement or Agreement. An alternative to bankruptcy proceedings whereby an agreement is met between the debtor, and insolvency practitioner and the creditors.
- IVA's - Individual Voluntary Arrangements.
- Secured debt - Debt which is covered by specific assets in the event of a default.
- Unsecured debt - Debt which is not covered by specific assets in the event of a default.