All About IVAs

£6,000+

Ideal level of debt for an IVA

Creditors you must owe money to

Months — the normal repayment period

75%

Of creditors (by value) must agree

Criteria to do an IVA

In order for an IVA to be likely approved it would be ideal if your debts are over £6,000
You cannot afford to pay your debts
You must owe money to 2 or more creditors
You will need a surplus income each month (after living expenses, but excluding debt payments)

How does an IVA work?

An IVA is a legally binding agreement between you and your creditors.
You will need the help of an Insolvency Practitioner, like ourselves, to set up, negotiate, and administer the IVA once it has been approved.
You agree with your creditors to pay off an affordable amount of your debt over a given period of time, by means of affordable monthly repayments (normally over 60 months).
Once the IVA has completed successfully, the balance of any unsecured debt included in the IVA does not have to be repaid by you.

IVA advantages

One easy monthly payment based on affordability.
We do not charge any upfront fees, and all fees and costs are taken from your monthly payment.
An IVA offers you protection from your unsecured creditors.
Creditor pressure is stopped as creditors must deal with us.
Interest on unsecured debt will be frozen at the date your IVA is approved.
Suitable for tenants or homeowners, individuals or couples, and even business owners.

Things to consider

If you are a homeowner you may be required to pay into an IVA for 6 years depending on the amount of equity you have.
The IVA will be approved if 75% or more of creditors (by value) agree to it.
If your circumstances change, and your IP can't get creditors to accept amended terms, the IVA is likely to fail. You will still owe your creditors the full amount of what you owed at the start, less whatever has been paid to them under your IVA after costs of the IVA.
Details of anyone who enters into a formal debt solution such as an IVA are entered onto a public register, although someone would have to actively search for the register to locate them.
As with any formal debt solution, an IVA will impact on a credit file for the greater of 6 years or 12 months after completion.

IVA Frequently Asked Questions

All IVA FAQs

An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors. An IVA can give you more control of your assets than bankruptcy.

Most unsecured debts other than debts such as court fines and student loans are covered under an IVA. This can include credit cards, store cards, payday loans, overdrafts personal loans and more. Trading debts including debts owed to suppliers and H M Revenue and Customs are also covered under IVAs.

Your payments to the IVA will depend on different factors of which your income will play a major role. Your monthly expenditure and your personal circumstances will also be taken into consideration. We ensure that you pay what is affordable for you and not what your creditors may ask for.

Even if some of your creditors have taken court proceedings against you these debts can still be included in your IVA. Once the IVA is approved all court actions will cease.

We'd love to hear from you

Contact Us

If you are having a difficult time financially our team will be happy to discuss your available options. Fees will apply in some solutions, and your credit rating may be affected.