All About IVAs

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.