IVA - Be careful

An IVA is a popular way to stop or avoid Bankruptcy and if you are considering or want to know if you could apply for an IVA we would request you read the following carefully.

The internet is littered with websites offering information on IVA's but few if any can offer a "Home Visit", some are just capturing your details often selling these on as leads and none to our knowledge tell you how many applications were turned down so please be aware and see about us for more details on this.

"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

What should I look for?

Established for over 5 years both on and off line our clients had realised that not all companies are the same and any mistake here can have serious consequences therefore you should be looking for the following:-

• The lowest monthly repayment
• Fast assessment to check if you could apply
• A free Home Visit available 
• Understanding of the pro's and con's
• High % of applications approved
• No separate fees to pay
• Check your other options

Why? - Not all companies are the same

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 agreement and we have seen many where the proposed payment was to high.

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

We can email the forms to speed matters up if you wish.

A free home visit is often available in England and Wales for clients who prefer a face to face discussion before finally submitting their application forms.

Understanding the Pro's and Con's to help make sure you can make the right decision.

High % of application approvals and on average where we have helped our clients prepare for an IVA only 1 per year was declined. If your application is declined you will have wasted a lot of time and you could find yourself in a worse situation than before.

No separate fees to pay unlike some companies who do charge up front fees and any fees associated with administering your IVA agreement are included in your monthly payment.

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

What is an IVA or Individual Voluntary Arrangement

An IVA is a formal Government approved scheme which is a popular method of stopping or avoiding Bankruptcy or clearing your debts early where you repay what you can afford with the balance written off.

Home owners get to keep their homes unlike in Bankruptcy and once you apply creditors can be stopped from taking any further legal action while your application proceeds and once accepted 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. see case studies

If your IVA application is accepted and you keep to the agreement:-

• Pay one affordable monthly payment
• The outstanding balance written off 
• You will be Debt Free in 60 months or less
• 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.

It is likely entering into this type of scheme will affect your credit rating and please follow the link for further details.