SIVA - Simple IVAs

The SIVA (or Simple IVA) is soon to replace the IVA as the Government looks to update the Insolvency Act 1986 to cater for the rising number of non-business related insolvencies.

When IVA's were introduced as part of the Insolvency Act 1986, it was intended they would serve as an alternative to bankruptcy for those with business debts.

Record levels of consumer debt and the heavy marketing of IVA's has resulted in a most IVA's being undertaken by non-business people. Therefore the government has started looking into improvements to make the IVA process more suited to the majority of people affected by it.

It is expected the current IVA system will remain for business debtors, but a two-tier system will be introduced for non-business debtors.

This two-tier system will be known as the Simple IVA (SIVA) with the tiers being divided according to level of debt.

SIVA 1

For debts under £25,000. Like the present IVA, success of an proposal depends on a 75% majority of creditors, by value of the debt, voting in favour.

SIVA 2

For Debts between £25,000 and £75,000. Success of an proposal depends on a 51% majority by value of the debt, voting in favour.

Introduction date for SIVAs

It is expected Simple IVA will be introduced some time in 2007, however exactly how they will operate will still not fully know.

This information last updated, December 2006.

Can We Help? Want To Know More?

If you would like us to call you back with some specific advice or more details about our debt solutions then please enter your details below.

your name
 your email address (optional)
your phone number
 2nd phone number (optional)
Best time to phone

Please enter your question or some information about your current situation. (optional)

Privacy Statement: We consider protecting your privacy to be a serious issue. By submitting your details you are accepting our Privacy Policy.

All Correspondence is in the strictest confidence.

Call us FREE (from a landline) on 0800 043 2444 for Confidential Advice

We are here to take your call 24 hours per day