If you go to a debt management company for an IVA, find out how much they will calculate before making a decision. A debt management company is probably more expensive because it collects a royalty in addition to the receiver`s fees. Any refunds are paid directly to the receiver. You will distribute the money to your creditors. Part of it is kept by the receiver to pay his costs. Many factors can contribute to the insolvency of a person or business. Hiring a company with insufficient accounting or human resource management can contribute to insolvency. For example, the accountant may poorly create and/or track the company`s budget, which is too much. Expenses add up quickly when too much money is circulating and there is not enough business. An individual voluntary agreement (IVA) is an agreement with your creditors to settle all or part of your debts. You agree to make regular payments to a receiver who shares this money among your creditors. Only immovable property included in the private insolvency agreement is concerned.

Assets not included in the agreement are not available to creditors. The debtor is only obliged to contribute to part of his income if the agreement contains conditions which oblige him to do so. Where applicable, the debtor pays the same type of contribution on the income he would pay if he were bankrupt. The private sector insolvency agreement applies to the agreed payment and/or reorganisation of secured debt up to a total amount of €3 million (and unsecured debt) over a period of six years. The ceiling of €3 million can be increased in agreement with your secured creditors and the 6-year limit can be increased to 7 years in certain situations. Contrary to what most people believe, insolvency is not the same as bankruptcy. If the payments you make are not enough to pay your debts in full until the end of your IVA, you will not have to pay the rest. The liquidator should advise you on this. Under the original legislation, you could only obtain a PIA with the agreement of a certain majority of your secured and unsecured creditors – see the main elements of a PIA below. However, as noted above, you can now apply for judicial review if a lender denies your personal insolvency application.

See “Meeting of Creditors” below for more details. Make sure you know how much it will cost before you ask a receiver to act for you. A person may propose a personal insolvency agreement if certain conditions are met: insolvency is a state of financial emergency in which a company or person is unable to pay its bills. It may lead to insolvency proceedings to bring legal action against the insolvent natural or legal person and to liquidate the assets to repay unpaid debts. This restriction will be lifted once the agreement has ended. A private insolvency agreement is established and a meeting will be held at which creditors will vote on the agreement The PIA has been described as insolvency proceedings that can benefit from cross-border recognition. . . .