An IVA will not be hard work for you, as we deal with everything. Once your IVA proposal has been accepted by your creditors it is legally binding. So all you need to do is make one low monthly payment.
An IVA is a repayment plan which allows you to make reduced payments to your creditors. This can only be done with unsecured debts. As if you owe money which is secured against an asset, such as a mortgage on your home, and you fail to meet the repayment obligations your creditors can take various actions including forced sale of the asset.
But your IVA will cover your unsecured credit commitments such as: overdrafts, credit cards, store cards, personal loans etc.
The typical time scale for an IVA is 60 months.
Yes, you can keep your bank account. However if you owe money to the bank where your salary is paid into, then it is best to change your bank account as they are likely to take all of these funds.
With an IVA you can still open a new ‘simple’ bank account (without a cheque guarantee card or overdraft facility) with a bank that you do NOT owe money to, ensuring that you are in control of your income.
If your circumstances change then you must contact your I.P as soon as possible. They may be able to modify your IVA payments to reflect your new financial situation. If it is a short term problem, then they may be able to grant an emergency payments break.
If you miss any payments without your I.Ps permission, then there is the chance that your creditors can commence bankruptcy proceedings. Successfully completing your IVA is the only way to remain protected from your creditors.
An IVA is a complicated legal procedure which can only be undertaken by a licensed Insolvency Practitioner. Thus meaning that the costs of setting up the IVA are rather high. If you would like more information about how an IVA works, please call us today on 0808 131 0039.
IVA stands for Individual Voluntary Arrangement. They were introduced by the government as part of the Insolvency Act 1986, as a more viable solution to bankruptcy.
It is a legal arrangement with your creditors where you pay just one affordable monthly payment, over a period of 60 months. At the end of your IVA you will be debt free as any outstanding debt is written off.
As long as your rent payments are up to date, then your landlord does not need to know about your IVA.
There is not a specific number that your creditors will ask for in making the decision whether to accept you IVA proposal or not. The proposal should be in the interest of both you and your creditors, and your I.P will help you with this.
Yes, you can. If you wish to pay a lump sum into your IVA, then we can arrange a variation meeting with your creditors to offer it and confirm the final settlement.
At the end of your IVA agreement, if all the terms of your proposal have been carried out, then your creditors will have no further claim against you. All of the outstanding debts will be written off.
You will need at least three creditors for an IVA.
Yes, your IVA will damage your credit rating. But if you are missing monthly payments then your credit rating is already damaged.
Your IVA will allow your credit rating to be repaired more quickly, as when you enter into an IVA it remains on your credit rating for six years. The IVA will last for 5 of these, so there is only one year where you may want to borrow with a poor rating.
Insolvency Practitioners are licensed to practice by one of the following bodies, who ensure compliance and regulate their service:
No, as unlike bankruptcy, the details of an IVA are not published in your local paper. It is a private legal agreement between you and your creditors.
Under an IVA, your mortgage and any other secured payments are prioritised, which means we will ensure that you repay them before your IVA contributions are taken. Therefore your home is protected, unlike in bankruptcy.
An IVA is suitable if you owe at least £15,000 of unsecured debt, spread over three or more creditors. It is the perfect solution if you are considering that bankruptcy may be your only way out of debt. Call us free on 0808 131 0039.
We will always ensure that you get enough votes to get your IVA accepted, and therefore do not normally proceed with a case that would not get sufficient votes, as it is a costly procedure.
To be accepted, your IVA proposal needs 75% of the creditors (by value of debt owed) to vote in favour. If the creditor/s that refuse your case is/are owed more than 25% of your debt then your IVA application will have failed.
You may still receive calls and letters whilst your IVA is being processed, but as soon as it has been approved they cannot take any further action.
Yes. Once you apply for your IVA, your Insolvency Practitioner will notify the appropriate authorities and courts and argue that your IVA is in the best interest of all parties. If this is accepted, then your Bankruptcy will be annulled.
No, once your IVA has been accepted, it is a legally binding process between you and your creditors. So it cannot be cancelled.
An IVA is legally and financially complex and is therefore only allowed by law to be undertaken by licensed Insolvency Practitioners. The average time period for processing your IVA application is 4 to 6 weeks.
Whilst your IVA proposal is being prepared, the court will be notified which is usually enough to stop proceedings. If this does not happen then your advisor will write to both the court and your creditors.