If it is discovered that a company in the United Kingdom is paying some debts in favor of others, the company can be issued a citation and face criminal charges. Before this occurs, some elect to negotiate an Individual Voluntary Agreement with an insolvency professional or a counsel specializing in such cases. These services are extremely costly, with some exceeding £4,000.
Once a business has chosen to file for an IVA, his company management of paid debts is overseen by the IP that he is paying for, and the business or individual may continue to work and retain their assets. One of the problems, and the most frequently cited complaint, is that a business that has chosen to file an IVA has severely harmed its credit rating and is effectively unable to obtain additional credit while paying off existing obligations.
Consequently, some have chosen a DMP, or Debt Management Program. The DMP is not a legally binding contract, so the person or entity paying off debt is free to pay whoever he or she chooses. Due to the rights still held by the creditor in dealing with his credit collectors, the majority of people who still have assets and capital choose to retain their funds from the IPs and negotiate a debt settlement with their creditors.
Obviously, if you are already headed for bankruptcy and would like to keep some of your assets, the IVA is the only method to prevent you from declaring bankruptcy.
" - https://www.affordablecebu.com/
