IVA - Will I Lose My Assets
Personal assets within the IVA agreement that has been set up will need to be declared to your Insolvency Practitioner who will decide on what should be inclusive within the assets of any IVA proposal presented to the creditors On most occasions you will be allowed to keep your car and house throughout the IVA agreement and process but if the agreement defaults then it will become bankruptcy meaning that you could lose all assets you own that you do not need to live.
What assets can be excluded from an IVA?
As certain personal assets cannot be included in bankruptcy, creditors will rarely demand their inclusion in an IVA. Examples are –
- Tools of trade.
- A vehicle that is essential to a person for their work.
- A pension fund.
- An award of personal damages EG, for pain and suffering, in a personal injury action.
Having said this, if a person has a strong wish to avoid bankruptcy and has little else to offer, they may choose to include these assets in their IVA proposal.
