• Individual Voluntary Arrangements (IVA's) Return to homepage
  • What is an IVA - Individual Voluntary Arrangement?
  • How do I know an IVA is right for me?
  • How does an IVA work?
  • How is IVA Debt Advice Helpline different?
  • How long does it take to set up an IVA and what is the process?
  • How long does an IVA last?
  • How much does an IVA cost?
  • Will I ever have to go to court?
  • Will my creditors still call me?
  • What happens at the IVA creditors meeting?
  • Can I clear all my debts with an IVA?
  • Will I lose my home in an IVA?
  • Will an IVA affect my business?
  • What happens to my Credit Cards in an IVA?
  • Will my IVA affect my bank account?
  • What if my financial circumstances change during the IVA?
  • What happens if I default on the terms of my IVA?
  • Do I have to tell anyone I have an IVA?
  • Can I share my IVA with my partner?
  • How does an IVA affect my credit rating?
  • I live with my parents – will the IVA result in them being blacklisted?
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Individual Voluntary Arrangements (IVA's)

An Individual Voluntary Arrangement (IVA) will:

• protect you from recovery action that your unsecured creditors may take
• usually involve your creditors writing off part of what you owe them
• freeze interest
• enable you to make one affordable monthly payment

A proposal for an IVA will only be approved where enough creditors vote in favour.

Our Insolvency Practitioner will supervise your IVA and he is licensed and regulated under insolvency law as an insolvency practitioner.

We do not charge any up front fees.  In the event that an IVA is approved, the fees we charge for preparing, negotiating and administering your IVA are agreed with creditors and paid out of funds that you pay into the IVA that would otherwise be available to them. There are no hidden costs.

Pros of IVAs

• Creditors who vote against your proposal are still bound by it
• Creditors whose lending is unsecured can’t take any further action
• Interest is usually frozen as long as you keep up your payments
• Your insolvency practitioner will help you prepare your proposal, including agreeing the level of your household and personal spending based on guidelines acceptable to creditors.
• We will allow you to pay our fees for preparing your proposal monthly, as part of the IVA.  No fees are payable if the IVA is not approved
• You make only a single payment each month
• Your insolvency practitioner is responsible for administering and distributing your payments
• The terms of an IVA will usually enable you or your spouse or partner or a relative to make arrangements to buy your share of the net worth of your home or to make extra payments, rather than the home having to be sold. This may be done through a remortgage or a loan. (Net worth means its value after any debts secured on it have been paid.)
• On completion of the IVA, the balance of what you owe your creditors is written off
• You may be able to continue running any business you have.

Cons of IVAs

• Your IVA is entered on a public register
• Other insolvency practitioner firms may require payment in advance for preparing your proposal and getting your creditors’ agreement
• If there is some equity (value) in your home after taking account of the mortgage(s) on it, you will probably have to pay for your share, usually in the fifth year of your IVA, by remortgaging the property. If you can’t get a remortgage, you may have to continue making monthly or quarterly payments from your income, for up to another year
• If your circumstances change, and your practitioner can’t get creditors to accept amended terms, the IVA is likely to fail. You will then still owe your creditors the full amount of what you owed them at the start,
  less whatever has been paid to them under your IVA
• If your IVA fails, you may be made bankrupt

   

If you are not sure about the extent of your problem then try filling in our online Debt Calculator.  This will help you calculate how much money you have left over each month to pay your debts (creditors)

Getting in touch with an insolvency expert for free advice is as easy as picking up the phone.  Call us on free phone 0800 169 1536.

If you would like one our experts to contact you to discuss your financial position and how we can help, please send us your details so we can arrange a call back at a time that is convenient to you.