IVA  

Please read the following carefully.

If you are considering an IVA over worries about creditor legal action on a specific debt please check the link on the left, there may be an alternative way to deal with a single problem debt.

An IVA is a very popular way to clear debts and depending when you act, can stop a Bankruptcy Petition, avoid Bankruptcy, Statutory Demands, Charging orders and CCJ, if you are considering or want to know if you could apply for an IVA we would request you read the following carefully and please see about us. 

The internet is littered with websites offering IVA advice and information but many are just capturing your details often selling these on (just Google IVA leads), others will imply you could do an IVA but before you know it you could find yourself in a Debt Management Plan.

As established Debt Counsellors we have been helping consumers consider IVA's by providing honest IVA advice and information for over 6 years, most consumers do not realise that keeping to the IVA agreement is usually far more important than getting into an IVA especially with the controls and restrictions that can be imposed on your finances.

An IVA will stop legal action and consolidate all your unsecured debts into one affordable monthly payment with interest and charges stopped, you repay what you can afford and the balance is written off, please read on for more detailed information. 

"Firstly I would like to thank you for all your kind support help and understanding at what has been a very distressing and upsetting time" Mr. V

IVA Help 

What should you look for?

Not all companies are the same and any mistake here can have serious consequences therefore you should be looking for the following:-

• Is the website just capturing details to forward IVA leads on to others?
• The lowest monthly IVA repayment.
• No separate IVA fees to pay.
• Fast assessment to check if you could apply for an IVA.
• Understanding of the pro's and con's.
• High % of IVA applications approved.
• Check your other options.

IVA - Not all companies are the same

A large number of websites if have searched for IVA will be IVA lead providers and they are just capturing your enquiry using headlines like "60 second application" to sell to others.

The lowest monthly repayment which depending on your debts can be in the region of £180pcm will give you the best chance of keeping to the IVA agreement and we have seen many where the proposed payment was too high and the IVA agreement was broken leading to potential Bankruptcy.

No separate fees, some companies charge up front fees before your IVA application is heard, these can be hidden by getting you to start a monthly payment while administration work is carried out and are not refunded, other fees are included in your IVA monthly payment. 

Fast IVA assessment is essential and if you have the right documentation to hand we can normally check within a matter of minutes from a quick call or email but a full visual audit of your debts, income and expenditure must to take place for an IVA and anyone offering almost instant decisions is only checking in principle, this is not a yes its a maybe.

The so called 60 second IVA applications you see on some websites are simply nonsense!

Understanding the Pro's and Con's of an IVA is essential to help make sure you can make the right decision.

Check your options is essential, there may be another way for you to deal with your debts that is more suitable than an IVA based on your circumstances or there may be action you could take now that could increase these.

Please call or email if you would like us to identify if it is likely you could apply for an IVA or maybe you would just like a second opinion on action you are planning to take.

IVA - Do you qualify?

This is far more complicated that most websites on the internet would have you believe and even who the debts are with will affect the outcome with some creditors often voting no or insisting a debt management plan is tried first - you won't find the negatives issues or problems on the IVA "farmer" websites.

Even your current mortgage will be investigated to ensure the IVA payment will be affordable if your mortgage payment goes up at the end of a fixed rate deal.  

The basic starting points are as follows.

1. Qualifying debts for an IVA of £15,000 or over.

2. Three or more creditors.

3. Realistic minimum monthly disposable income of £180pcm.

4.  Income will need to be properly proven.

5. Employed.

A quick call or email to us could prevent you wasting valuable time and sometimes money, we will quickly be able to genuinely check your suitability for an IVA application.

IVA Information

An IVA also known as an Individual Voluntary Arrangement is a formal Government approved scheme which is a popular method of stopping or avoiding Bankruptcy and clearing your debts where you repay what you can afford with the balance written off.

Home owners get to keep their homes in an IVA as long as they keep to the agreement and once you apply creditors can be stopped from taking any further legal action while your application proceeds, once your IVA is accepted and you keep to the agreement no further action can be taken.

Payments for an IVA are calculated based on the amount of debt you have and the amount you can realistically afford, you would normally need a minimum of 15K in unsecured debt with 3 or more unsecured creditors. If your IVA application is accepted and you keep to the agreement:-

• Pay one affordable monthly payment
• The outstanding debt balance written off 
• All further interest and charges stopped
• No further legal action can be taken
• Creditor letters and calls will stop

In 1986 Government Legislation was introduced to provide people with a way out of debt with a clear end date without going bankrupt. It was realised that an alternative to either struggling on possibly spiraling debts or debt management where it could take a longer time to clear debts was needed and the opportunity to enter into a procedure called an IVA was introduced.

Apart from those directly involved with your IVA agreement no one else would need to know. Papers have to be lodged with the Court and your IVA registered with the Insolvency Service.

Qualifying and your suitability for an IVA depends on several factor that will include your personal circumstances and the type and size of your debts and these agreements can only be administered by a licensed Insolvency Practitioner.

An IVA is a formal agreement and must not be taken lightly; in return for the benefits above you are risking bankruptcy if you do not keep to the agreement.

In an IVA creditors get to vote based on the size of their debt. You will need 75% by value in favor for the proposal to be accepted. 

It is likely entering into an IVA will affect your credit rating and please follow the link for further details.

An IVA is a complex formal agreement with restrictions on expenditure and you must read and understand the small print before you formally apply to ensure there are no surprises later.

If your IVA fails you will still owe the full debt less any payments made.