Simple IVA

The Government is now consulting on plans to introduce a faster, easier IVA called the Simple IVA, or SIVA. This is intended to encourage people to settle their debts and so ease their financial worries.

Simple Individual Voluntary Arrangements (SIVA's) will allow debtors to clear their debt more efficiently and the time-scale of setting up a SIVA is expected to be much shorter than the original IVA.

Under the new proposal -

• Only 50.1% of the creditors will have to accept the SIVA as oppose to 75% on the IVA
• It is expected that SIVA's can be arranged for clients owing up to £25, 000
• IVA's will stay in place for clients owing more than £25, 000

All proposals will need to be balanced: fair, acceptable and certain for the debtor, but also ensure that the maximum affordable contributions are paid to protect the interests of the creditors.

SIVA's are expected to be introduced in Spring 2007

To discuss SIVA's please call 0800 652 8086