IVA whilst living in the USA
An IVA is a formal debt solution that acts as an alternative to bankruptcy.
It is particularly useful for people with assets or income that might be vulnerable under the bankruptcy process.
It has the power to help people who are overburdened with UK debts even when they are living in the USA.
Although, to qualify for an IVA you must have been a resident in England, Wales or Northern Ireland within the last 3 years.
The IVA forms a new agreement with your creditors, allowing you to make payments based on affordability over a fixed repayment term, which is normally set to 5 years, after which any unpaid debt is legally written-off.
An IVA can only be administered by a licensed Insolvency Practitioner operating within the UK.
An IVA can Protect Real Estate.
One of the significant advantages an IVA has over other debt solutions is that it can protect real estate from creditors.
Even property you own in the United States is within the reach of the Official Receiver, should a UK creditor petition for your bankruptcy in your absence.
Fortunately, an IVA offers protection over any US owned property in just the same way as it protects property in the UK.
This is because by agreeing to an IVA, a creditor voluntarily forfeits the right to pursue bankruptcy proceedings against you, therefore removing that threat.
Before a formal IVA application is made, an assessment is undertaken to ensure the viability of your IVA is worthy of being put before your creditors.
Once verified, creditors are formally approached and invited to vote on your proposal. Their votes are then counted to establish whether the IVA can proceed.
If sufficient creditors vote to accept your IVA, then it becomes legally binding on all creditors whether they agreed to accept your IVA or not.
Making IVA payments from Abroad
Once the IVA has been agreed, you make payments to your Insolvency Practitioner who then distributes a fair share to each of your creditors.
Payments continue for the duration of the IVA, afterwhich any remaining unpaid debt is written off.
There are 3 practical considerations to be noted when setting up an IVA whilst living in the USA:
- There needs to be an active UK bank account to receive funds.
- There may be money transfer costs for moving the money.
- There may be currency exchange costs.
All payments into the IVA must be in UK Sterling and all money transfer costs are paid for by the applicant.
Applying for an IVA whilst living in the USA
If you live in the USA and need an IVA, then simply complete our IVA application form today and one of our advisors will respond as soon as possible.
Unfortunately, moving away from debt doesn't make it go away, even if you are prepared to move a very long way, such as to the USA.
As the world becomes more connected, it's becoming more and more difficult to remain off-grid.
So, if you have moved abroad and left behind significant outstanding debts in the UK, perhaps the information on this page will help you take back control.
