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With an IVA you could:
- Write off all the debts you can’t afford
- Only pay what you can afford
- Get full protection from creditors
- Get interest frozen on your debts
- Be debt free in 60 months
We have a team of dedicated experts ready to take your call. We will discuss with you your situation and offer the best advice and solution to suit your needs.
An IVA is not the same as a Debt Management Programme which is less informal.
An IVA is arranged to help you pay off your debts in a way that is affordable to you.
INDIVIDUAL VOLUNTARY ARRANGEMENTS
An IVA is based on a monthly payments a period of 60 months. When setting up the IVA, you will be asked to make known all of your assets, liabilities, income and your cost of living. This information will ensure that you will not get into even more debt, as the amount payable to creditors is determined by the amount you can afford to pay after your normal cost of living has been deducted.
An IVA proposal is prepared by a licensed Insolvency Practitioner. You will be sent a copy of the proposed agreement for you to approve. Should you disagree at this point with anything in the proposal you should talk to us about any alterations. The Insolvency Practitioner will then present it to the creditors.
Once approved you will be required to take it to your local county court and have it registered. A copy is then sent to each creditor giving notice of any creditors meeting that may be required. Creditors then vote to accept or reject the proposal, they may at this time wish to add their own modifications but can only do so with the your consent.
In the case of a consumer IVA creditors usually prefer to vote by fax or post rather than attend a meeting. The debtor will usually be asked to make sure they can be contacted by phone on the day of voting. The rules state that providing 75% (in value terms) of those that have voted, vote to accept the proposals (with or without modifications) then the IVA becomes legally binding on all other parties whether they voted or not.
When an IVA is accepted the Insolvency Practitioner monitors your IVA's progress and ensures that the terms and conditions that were agreed to during the meeting are adhered to. It is the your responsibility to pay the agreed payments to the Insolvency Practitioner who will then ensure that payments are distributed to all creditors on a pro-rata basis.
It is in the debtors own interest to maintain their payments as failure to pay will almost certainly result in the cancellation of the IVA. If a debtor finds at any stage they have difficulty paying they should contact their Insolvency Practitioner who may be able to re-negotiate with creditors. Once the IVA has been completed in many cases the debtor may not have actually paid off all of their debts. Any outstanding balances are written off and you will be free to make a fresh financial start.
If you have an endowment policy linked to your mortgage, then you may have to cash it in to use the proceeds to pay your creditors as also likely with any equity you may have in your home. This may seem harsh but as you have entered into an IVA with your creditors means that such drastic measures may be expected of you to pay your debts.
Frequently asked questions about IVA's
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What is an IVA? |
A piece of Government legislation that is designed to help you clear debt. An IVA is a formal agreement between you and your creditors and stops ALL creditors demands.
It enables you to pay off your debts in affordable monthly payments over a fixed period, usually 60 months.
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How can an IVA help me? |
Once set up and if you continue to pay the agreed amount each month you are be protected from any further action being taken by your creditors. Your credit rating will not be as seriously affected as it would by bankruptcy.
If you stick to the agreement for the full term, your creditors write off any unpaid debts leaving you with a fresh start in your financial affairs.
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What will happen if I cannot meet my payments? |
Once we agree the payment plan that best suits your needs to ensure you can meet your payments for the duration of the IVA.
If your circumstances do change and you find that you are unable to meet your payments, we will try to renegotiate the terms of the agreement with your creditors.
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What happens when the IVA is completed? |
As long as you have fulfilled the terms of the agreement, your creditors will have no further claim against you and the balance of any remaining unpaid debts is written off leaving you debt free.
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Do all of my creditors have to agree to an IVA? |
To approve your IVA, at least 75% (of the debt value) of the creditors must accept your proposals. Even if they don’t vote, or they vote against your proposals, each of your creditors will be bound by the agreement as long as it has been accepted by the majority.
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Why would my creditors accept an IVA? |
In accepting an IVA, your creditors will expect to get a better return than they would from any other reasonable alternative, and your payment proposals should demonstrate this to be the case.
Your creditors will also benefit from the fact that your IVA is being monitored independently.
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What will an IVA cost? |
All costs associated with your IVA are taken from the payments you make towards it.
You don’t pay anything extra and there are no setup fees.
We are committed to being honest, open and fair to both you and your creditors about fees and any other costs that may be incurred.
We will inform you of the proposed fees for your particular case before you agree to the IVA.
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