Don’t Struggle Alone – We Can Help
If you are struggling with unaffordable unsecured debts then an IVA (Individual Voluntary Arrangement) may be the best solution to your problems.
We are the No.1 provider of new IVAs having arranged more than anyone else in 2014.
“We’re great listeners, never judgemental; and give only the most ethical advice.”
A DebtFree IVA can:-
- Help you clear debt by affordable payments.
- Stop pending legal action, including bankruptcy.
- Freeze Interest on debts.
- Write-off of some debt upon successful completion.
- For homeowners avoid repossession or forced sale.
We are able to propose IVAs for debts as low as £5,500 and repayments of £70 per month. These are minmum payments – actual payments depend on individual affordability.
Important to know: An IVA impacts your credit rating in the medium to long term. Fees are payable. Some homeowners may be required to release equity in the final year of their IVA. If the IVA fails, you may be made bankrupt. Not available in Scotland. Read more about IVAs.
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What is an IVA?
Got joint debts with your partner?
About 40% of the cases we handle are for couples with some debts in both their names.
An IVA is a Government scheme to help those with unaffordable unsecured debts. It is designed to help people who have little prospect of repaying their debts in full – but who want to avoid bankruptcy and repay as best as they can.
How an IVA works
An IVA is an agreement between you and the those to which you own money. We’ll review your financial situation to determine what you can realistically afford to repay each month. Should an IVA be the most appropriate course of action we will recommend a formal proposal to your creditors.
If the proposal is approved no more interest or changes can be added to your debts. Provided you maintain payments, your unpaid debt will be written off at the end of the IVA, which normally lasts 60 months.
More Information about IVAs
This includes important considerations you must take into account when deciding if an IVA is the right solution for you.
The most typical debts included in an IVA are unsecured debts from personal borrowing, e.g. personal loans, credit cards and bank overdrafts. However some not so obvious debts can also be included.
- tax arrears.
- catalogue debts.
- gas, electric or water bills (from a previous address and supplier).
- disconnected mobile phone bill.
- rent arrears (from a previous address).
- some items bought on finance.
- car finance ( if you no longer have the car).
- council tax arrears – from a previous year.
Any service which you’re no longer using, where money is outstanding, has the potential for inclusion in an IVA; e.g. unpaid nursery or medical bills.
Secured debts cannot be included.
Your must ensure that you continue to make payments to creditors that are outside of your IVA. See debts we can help with for details of what can and cannot be included in a IVA.
Failure to pay any taxes, fines, child support payments and other debts outside of your IVA could result in a loss of access to essential goods or services or repossession of, or eviction from, your home.
During the IVA, you will normally not be allowed to borrow more money. A major benefit of an IVA is to make possible the repayment of unaffordable debts, so the ability to borrow more should be furthermost from your mind when considering one.
Like all adverse information, a record of your entering an IVA will be retained by credit reference agencies for six years. Your participation in an IVA is entered onto a public register.
Creditors are looking for applicants to demonstrate their best attempt to repay as much of their debt as is reasonably possible and this must be reflected in the IVA proposal. You won’t be expected to live in poverty but restrictions may have to be applied to your expenditure as part of your IVA.
While we only put forward cases where there is a high expectation of success, there’s no guarantee your IVA application will be accepted by your creditors.
You can withdraw your proposal for a voluntary arrangement at any point up and including the day of your creditors’ meeting, which is when your IVA would be approved or otherwise.
Once the arrangement has been approved you have agreed to be bound by its terms and entered formal insolvency proceedings.
Under an IVA, your mortgage and any other secured payments are prioritised, which means they are taken into account before looking at how much you can afford to pay towards your other debts. Therefore your home is protected, unlike in bankruptcy.
If you have significant equity in your property, you are likely to be asked to make a contribution from that towards the end of the IVA by way of re-mortgage. This is subject to affordability; so you’re never required to pay more than you can realistically afford. Being an IVA holder will impact your credit rating and ability to get a re-mortgage. If you are unable to re-mortgage, the IVA may be extended by a further 12 months.
For more information see IVAs and homeowners..
It is not in your creditors best interests for your IVA to fail. Therefore, if your financial situation takes a turn for the worse, it may be possible to reduce payments either with just the approval of your IVA supervisor or for larger changes, by means a formal “variation” where creditors vote, like a mini-IVA proposal.
If your circumstances improve and/or you come into extra money during the IVA, you will be expected to contribute this, in part at least, into the IVA.
While an IVA can prevent bankruptcy – should it fail and you do not make alternative arrangements with your creditors, you may be made bankrupt.
DebtFree is a trading style of Harrington Brooks, one of the largest and longest established debt resolution providers in the UK.
As of March 2015 we have over 57,000 clients on our financial management programme and a further 18,000 clients doing their IVA with us. In 2013 we set-up more IVAs than any other provider.
We employ over 500 staff in our offices in Sale, Manchester; the majority of which are involved in providing personalised debt advice, liaising with creditors or providing customer support and service.
- Experience. We are currently have over 18,000 IVA clients. Everyday people successfully complete an IVA with us, becoming debt free.
- Reputation.We (Harrington Brooks) have an excellent reputation with our clients and are well reviewed online. View our reviews on Trust Pilot
- Excellent Approval rate.While creditor acceptance of your IVA is not guaranteed, we typically achieve a success rate of about 90% to 95% each month.
- We are not a lead generator.Many of the web sites you’ll see about IVAs are just their to capture your details and sell them on; often to several companies. This is not the case here. Any enquiry made from this web site will be handled by us and us alone.
A specialist IVA advisor will call you discretely to discuss your situation.
He or she will ask some simple questions about your personal circumstances; your debts and about your household income. Once we have this information, we’ll be able to advise on the options open to you.
This is an informal consultation; without obligation and can be completely anonymous at this stage if you prefer. Once you are empowered with the advice we can offer; you’ll be in a better position to make an informed choice as to what to do next, even if that means you decide you don’t need our help.
Trust us to help you with your debts
IVA Client Stories
Real interviews with IVA clients who have successfully completed their arrangement and are happy to tell their stories for the benefit of others.
We are a REAL solution provider – many are not.
Many debt solution websites are just marketing agencies rather than companies providing the service you’re looking for. All they do is capture your details and sell them on. The same is true of the financial comparison websites.
We are part of Harrington Brooks and as of March 2015, we have over 500 staff and 75,000 customers us trusting us to help repay debts.
Contact Us and we alone will handle your enquiry in the strictest of confidence.
Fees and Costs
The fees and costs associated with an IVA come out of the agreed IVA monthly contributions. For full information see – explanation of IVA Fees.