Become Debt Free With An IVA

If you are struggling with unaffordable debts then an IVA (Individual Voluntary Arrangement) may be the best solution to your problems.

A DebtFree IVA can Achieve:-

  • Forgiveness of a sizeable proportion of debt.
  • For homeowners - keeping property.
  • Avoidance of pending legal action, including bankruptcy.
  • Interest freeze on debts.
  • Debt freedom in 60 months by making affordable monthly payments.

What is an IVA?

An IVA is a Government created scheme to help those with unaffordable debts. It is designed for people who have little prospect of repaying their debts in full - but want to avoid bankruptcy and repay as much as they can.

How an IVA works

An IVA is a legally binding agreement between you and the companies to which you own money - your creditors. We will review you financial situation and decide with you what you can realistically afford to pay back 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 by 75% of the creditors by value of debt, your debts are frozen and no more interest or changes can be levied against you. Provided you maintain payments, your unpaid debt will be written off at the end of the IVA, which typically lasts 60 months.

IVA's & Homeowners

Under an IVA, your mortgage and any other secured payments are prioritised, which means they are budgeted for before IVA contributions are taken. 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 asked to pay more than you can realistically afford.

We receive more questions about home ownership and IVA's than anything else, so please call us for free advice of how this may impact your decision to do an IVA. IVAs are also available to non-homeowners.

Key Information about IVA's

Unsecured debts only. An IVA should only be considered in extreme circumstances as failure to adhere could result in bankruptcy. Terms & Conditions apply.

Credit Rating:

A record of your IVA will be retained by credit reference agencies for a period of six years. Your credit rating will be impaired and it may be harder to obtain credit in the medium to long term.

Fees and Costs:

Initial debt advice is free but fees are payable if a debt solution is agree

An estimate of the costs involved in the arrangement will be included within your proposal; however these fees are subject to change at the creditors meeting. Once the creditors have approved your IVA the basis of our fees will be set and an up to date schedule of fees will be issued to you.

Chargeable fees are made up of Nominee's fees which relate to the assistance given to prepare your proposal and will be taken from the first payments made into your arrangement, and Supervisor's fees which relate to the ongoing monitoring, supervision and administration of your IVA and which will be charged on a monthly basis and deducted from the contributions you pay into the arrangement.

No further fees are payable by you.

Cooling Off Period/Right to Withdraw

You can withdraw your proposal for a voluntary arrangement at any point up and including the day of your creditor's meeting. Once the arrangement has been approved at the creditors' meeting and you have agreed to be bound by its terms, you have entered formal insolvency proceedings and no cooling off period applies.

The only way to truly know if you qualify for an IVA is to get professional advice.
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Calls are free from a landline. You may also call us on 0161 905 8942.
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IVA example

If your debts are currently as follows...

Overdraft £3,000
Credit Card 1 £4,000
Credit Card 2 £6,000
Personal Loan 1 £16,000
Personal Loan 2 £4,000
Total Debt £33,000

After entering in to an IVA, they could be...

Monthly payments £260
Total repayments £15,600

Debt Write Off: 53%

Payment levels are based on individual affordability of applicant.