IVA. Consideration should be given to the suitability of an IVA for consumers with debts below £5,000 and the reasons the consumer chooses an IVA, rather than other available debt relief or compromise options, should be clearly documented in the proposal.

The following are indicators that a person's circumstances are unsuitable for this protocol:

• Disputed debts - there should be no known material disputes in relation to the debts.
• Investment properties - those with investment properties would not be suitable for a protocol consumer IVA.
• The possibility of lump sum settlement through a gift.
• Sole trader with trade debts.

Consumers should be provided with a copy of this IVA protocol before the proposal is drafted. This can be either through provision of a physical copy or providing an electronic link. Consumers' attention should be drawn to their duties to disclose information.

[See 'Individual Voluntary Arrangement', 'IVA' and 'Insolvency Practitioner'.]

J

Joint and Several Liability

In its simplest terms, joint and several liability means that two or more people are liable for the loss suffered by another person.

Joint and several liability arises when two or more persons in the same contract jointly promise to do the same thing, but also separately promise to do the same thing.

Those who are 'jointly and severally liable' can either be sued on their own or with one other person for an entire debt ('severally'), or jointly with others.

Partners in a partnership or LLP have joint and several liability.

[See 'Partnership' and 'LLP'.]