Individual Voluntary Arrangement, also known as IVA debt restructuring service, is one of debt restructuring choice in Hong Kong. It aims at helping people who are at the brink of bankruptcy due to debt problems, providing with feasible solutions to shake off the financial distress by effective debt restructuring and arrangements.

According to the Article 20 of Chapter 6 of the Bankruptcy Ordinance, if the debtor wants to apply for IVA, the debt repayment proposal must be prepared by an accountant and a lawyer and hand it to all creditors. And according to the IVA procedure, the relevant proposal will be negotiated through the creditors’ meeting, when the creditors agree to more than 75% of the total outstanding amount, and after the court hearing and the issuance of an interim order, the debtor will need to repay until the debt is fully repaid according to the proposal.

The above is the summary of debt restructuring process of IVA HK. Please note that the proposal will directly affect the debtor’s repayment performance, so professionally licensed parties with extensive experience in handling debts, such as certified public accountants and lawyers, must arrange it. And they can thoroughly understand the debtor’s economic status to the debt information to formulate the debt restructuring plan. Our experienced professionals have been dealing with various types of debt problems for many years and can help you to formulate the most suitable restructuring plan. Moreover, our IVA debt restructuring charges are all clearly listed and transparent, and there is no hidden debt restructuring cost in any forms. Please feel free to contact us for more details.

IVA debt restructuring application qualification:

People with a relatively stable income and debts more than ten times of their monthly salary

People with sensitive occupations and cannot choose bankruptcy

At least 3 creditors or more are required to apply for debt restructuring

Types of debt that can be restructured through IVA:

  • Credit Card debt
  • Bank personal loan
  • Finance company loans
  • High-interest loan
  • Credit Union loans
  • Student aid loans
  • Tax

IVA HK debt restructuring procedure:

The first stage

In the first stage of the IVA application process, the debtors firstly provides our company with information about their debts and income proof etc. for IVA HK debt restructuring inquiries and analysis, including creditors and the amount of debt which is going to be restructured. Our company will assess your debt situation (if the situation is suitable for applying for Individual Voluntary Arrangements), and we will design a suitable repayment plan for our clients. Then the nominees (such as accountants, lawyers, certified public accountants) will draft the repayment proposals, and according to our years of industrial experience and professional analysis in handling a variety of successful cases, we will formulate the debt restructuring proposals which can balance the interests of creditors and debtors effectively.

Inside the proposal, we will not only suggest the monthly repayment amount, the number of repayment periods, and the interest rate of the debt, but also will list the applicants’ living expenses and will clearly detail all personal assets such as private properties, cars, insurance, etc.

After two weeks, the client will need to formally take an oath and apply to the court for an IVA interim order through the representative lawyer.

The Second Stage

Two months later

After the court hearing, the court will formally issue an interim order for the IVA case. In addition, a notice of the creditors’ meeting will be published (in both Chinese and English newspapers) and a formal notice to arrange the creditors’ meetings.

The Third Stage

Creditors who have attended and voted or their relevant representatives can pass the resolution with the agreement of more than 75% of the total debt held. Then the IVA debt restructuring proposal can be successfully carried out. The debtors need to make the monthly repayment amount on time through the nominee to arrange the repayment to the creditors.

Benefits of applying for IVA:

    • After the IVA debt restructuring, in addition to reducing the debtor’s monthly repayment amount effectively, the debtor can maintain a better standard of living, and there is no need to worry about personal voluntary arrangements that will bring more burdens to the family.
    • This helps the debtor to prevent from being bankruptcy and damaging the credit reputation, and this also helps the debtor to maintain credit rating.
    • The application process is quick. What you need to do is to prepare the relevant documents and go to our law firm to take the oath within 7 to 10 days. In the next day after the oath is completed, our company will notify the creditors, such as related banks and financial companies, to avoid further debt nuisance.
    • According to the characteristics of IVA, there are some cases that the debtor’s repayment interest rate can be reduced by as much as 80%, thereby reducing the repayment amount accordingly, and successfully helping the debtor prevent the worst situation of bankruptcy. This also helps the applicant to start a new and better life.
    • IVA application can help to protect the debtor’s current job which is different from bankruptcy application. This will not affect the applicant’s reputation and ability to apply loan, and there is no need to worry about losing jobs due to IVA application, especially for debtors who engage in sensitive career, such as fund disposition, professional industries, dealing with debts through IVA is a practical, realistic and feasible solution.

*** We provide free professional analysis and consultation for IVA fee.

And your personal information provided will be kept confidential ***