IVA
Stop your creditors contacting you and write off your debt with an IVA, from £70 per month
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a debt resolution strategy designed for individuals who are struggling to repay their unsecured debts. It is a formal and legally binding agreement between you and your creditors, managed by a qualified Insolvency Practitioner (IP), who is often referred to as the “IP.”
An IVA enables you to repay a portion of your total debt based on your affordability, allowing for manageable monthly payments. Any remaining unaffordable debt will be entirely written off upon the successful completion of the IVA’s fixed term.
Eligibility for an IVA Solution:
At IVA Advice, we offer complimentary, expert information to assist you in resolving your debt issues permanently. Our years of experience and a team of dedicated professionals ensure that you can rely on us to help you regain your financial stability.
To determine your eligibility for an IVA in just a few minutes, simply click the button to get started. Our friendly experts are available to provide support and advice tailored to your unique financial situation.
Are you feeling overwhelmed by your current debts?
Are you seeking a debt repayment strategy that avoids the consequences of bankruptcy and safeguards your home from repossession? An Individual Voluntary Arrangement (IVA) might be the ideal solution for you.
An IVA is a legally binding agreement between you and your creditors, designed to help you manage your unsecured debts without resorting to bankruptcy. It allows you to make affordable monthly payments over a fixed period, typically 5 to 6 years, based on your financial circumstances. At the end of this period, any remaining outstanding debt is written off.
Not only does an IVA protect your home from being repossessed, but it also prevents further legal action from creditors, as long as you adhere to the agreed-upon terms. Additionally, an IVA can help improve your credit rating over time, as you demonstrate consistent and responsible debt management.
Before considering an IVA, it is crucial to seek expert advice to determine if it is the most suitable option for your financial situation. A qualified Insolvency Practitioner (IP) can assess your circumstances and guide you through the entire process, ensuring you make informed decisions and regain control of your finances.
See How We Can Instantly Help You:
- by reducing your debt payments to a minimum of £70 per month
- by stopping your creditors from contacting you or taking action against you
- by allowing you to keep your car and stay in your home
- by stopping all interest and charges instantly
- by providing a way to become debt-free after five or six years. Just make your payment every month for 60 months and at the end of the term all of your debt balances are written off completely
Note: Record of IVAs will remain on your credit file/credit rating for six years after you formally enter an arrangement. Don’t delay in seeking professional support. The earlier you get debt advice and IVA information, the sooner you can stop making unaffordable payments, and dealing with unwanted visits from bailiffs and debt collectors.
Do I Qualify for an IVA?
- do you have £5000 or more in debt?
- do you have 2 or more creditors?
- do you have a regular income? (if you are self-employed, check your accountancy for regular earnings)
- are willing to pay £70 or more towards all of your debts?
- are you a resident of England, Wales or Northern Ireland? (Scottish residents can click here to learn about a Trust Deed)
If you can answer YES to the above, then you could be likely to qualify for an IVA. If you decide to apply for an IVA, your credit file/credit rating may be impacted and your details will appear on the Insolvency Register (although this isn’t advertised).
What Debts Can I Put Into an IVA?
Generally speaking, all of your unsecured debts will be included in an IVA. The most common include:
- credit cards such as those with HSBC, Natwest, Barclaycard, Vanquis, Asda, Virgin, Capital One
- payday loans such as Lending Stream, QuickQuid, Drafty, Cashfloat, Satsuma
- overdraft debts with your current bank account or your previous bank account
- unsecured loans
- HMRC debts
- council tax debts/council tax arrears
- bailiff debts such as Moorcroft Group, Lowell, PRA Group, Advantis, Opos, Cabot Financial and more
It is important that the companies you owe money to are voting creditors. Only when 75% or more of your voting creditors agree to approve your IVA, can it begin. To make sure your IVA company have all of your creditors, they will run a credit check. This should show all of your credit agreements including your secured loans, mortgages, credit cards and payday loans. Your IVA must include all of your unsecured creditors, not only ones which appear on your credit search. Once the arrangement is agreed, it is difficult to add extra debt in, so please make sure all of the details of your debt is available today so the terms of the services available can be discussed in detail.
It may not include any court fines, student loans, council tax arrears, child support arrears, previous individual voluntary arrangements or parking charge notices that may need to be included in your IVA.
What Debts Can’t Go into an IVA?
- mortgage arrears – unless you have left the property
- rent arrears – unless your landlord agrees to the proposal
- debts from secured loans
- guarantor loan debts
- hire purchase debt
- child maintenance arrears/child support arrears
- other secured debts are not allowed in an IVA
- court fines
- very low debt value/debt values
- arrears from insurance policy and insurance policies
- debt charity donations
- national insurance debt
- Limited Company debt
- student loans
How Do I Apply for an IVA (UK)?
Interested in how you can set up an IVA? Here is the process…
- Consider all of the pros and cons and decide whether you should apply for an IVA.
- Use our free IVA payment calculator – it’ll run you through the basic qualifying criteria and let you know if you’re eligible.
- One of our friendly advisors will review your debts and provide you with free advice to determine if an IVA is the best option for you.
- We’ll help you create an IVA proposal to formally apply for an arrangement.
- Voluntary arrangements are formalised and you make one low payment into your IVA every month, to licensed insolvency practitioners in the UK. At the end of the 60 months, the remainder of your debt will be written off in full and your IVA will be complete.
A legislated debt solution such as an IVA could give you your life back and pave the way to a happier, debt-free future for you and your family. So contact us now for free, independent debt help.
What Information do I need for an IVA?
When you first get started, you won’t need to provide anything. The purpose of the initial call is to get a feel for your debt situation and to point you in the right direction.
An IVA isn’t always the most suitable option, and you may be guided towards a debt charity, such as the Money Advice Trust, Money Advice Service or the Citizens Advice Bureau for debt advice. You will not always be recommended a formal debt solution. If you are recommended an IVA, you may be in touch with a member of the Insolvency Practitioners Association (IPA) or a company which is authorised by the Financial Conduct Authority (FCA). But at present, IVA companies do not need to register with the FCA, as they are not responsible for regulating IVA’s.
Note – If you decide to go to a charitable enterprise, they will still charge fees/costs for setting up and managing an I V A.
If you do decide to apply, here’s what you’ll need to provide:
- payslips – 3 months payslips will be requested to provide proof to the Insolvency Practitioner of your earnings. If you’re not employed, then evidence will be needed for how you receive your income. This is important as we’ll need to prove that you can maintain payments towards your debts for the 5-year term. Your payslip should clearly show your full name and national insurance number. This also gives the Insolvency Practitioner an opportunity to check your employment status.
- bank statements – 3 months statements are needed to show all of your outgoing payments. Online statements are usually fine, as long as they clearly display your sort code and account name alongside your name and address.
- proof of identification – A driving license or passport is fine here. Sometimes you can use a National Insurance document is you do not have a driving license or passport. You can provide a copy of this by post, Whatsapp, or through email.
You’ll be able to go through all of the document requirements in more detail at your free telephone insolvency appointment, so don’t worry if you think you may struggle to provide one of the above.
IVA or Bankruptcy?
Bankruptcy also costs a fee of around £800 and is publicly advertised. However, some people find that bankruptcy may have a negative effect on their trade and employment.
But with an IVA:
- you’ll be allowed to stay in your home and can usually keep your car
- an IVA is not publicly advertised
- in most situations an IVA won’t affect your employment
- you don’t pay any upfront costs when you set up your IVA
- you pay affordable payments based purely on your income and expenditure
- you’ll usually be able to continue using your bank account
Getting Started with an IVA
With growing charges and the high rates of interest on unsecured debt, it’s always best to tackle your debt problems head-on, before they get out of control. Often the best way to do this is with a structured, legally-binding agreement like a debt IVA.
And if you’re struggling to make monthly repayments on your debt, it’s important to seek independent debt advice as soon as you can.
We can also help people who have been through redundancy or are furloughed. Call us for a free consultation.
Thankfully, applying for an IVA has never been easier. Contact us now for free and take control of your finances by calling our free phone number 08002335753.
IVA Frequently Asked Questions
What is an IVA?
The first question most people ask, which is “what is the IVA” or “what is iva”, is easily answered. An IVA for debt is a formal debt solution in which you can consolidate all of your debt and pay one low affordable monthly payment to an Insolvency Practitioner (IP). These payments start from £80 per month and generally last for a period of 60 months (5 years). At the end of the IVA’s monthly payments, the rest of your unsecured debt is completely written off and you become debt-free.
Who qualifies for an IVA?
To qualify for an IVA, you will generally need:
• £5000 or more of unsecured debt
• 2 or more creditors
• a regular income
• to be a resident of the United Kingdom
Will an IVA protect my home?
Most people take out IVAs as an alternative to bankruptcy because they’re looking to protect their family home. So yes, in most cases, your property will be protected. If you own your house and have a lot of property equity, you may be asked to release some of this equity to pay to your creditors for your debts. This is not relevant if you do not own your property.
Will an IVA work for me?
This depends on your current financial situation. Here are some helpful questions to consider:
• Are you looking for a ‘final’ solution to your debt problems? When you enter an arrangement, it provides a very realistic opportunity to become totally debt-free.
• Do you have creditors chasing you? When you enter into an IVA, this will stop and they will contact your Insolvency Practitioner (IP) instead of you.
• Do you need credit? You won’t be allowed to take out more credit whilst you’re in an arrangement.
• Can you commit to monthly payments? Your IVA company will make your payment as affordable as possible, but you need to ensure you keep up with these monthly payments. If you don’t, the arrangement could fail and you’d be back at square one.
• Are you expecting a windfall? If so, this money would likely go towards your debts. You should check with your IP if this happens.
How does an IVA affect your life?
An IVA affects your life in both positive and negative ways. It is down to you to work out whether the positives outweigh the negatives in your personal situation. The benefits are that you will be completely debt free after 5 years, allowing you to start again without any debts. Within this time you will not be contacted about your debts, allowing you to be financially stress-free for this period. The main negatives are the impact on your credit score and credit rating. It will be reduced and you will not be allowed to take out any credit whilst you are in your IVA.
What does IVA mean?
IVA stands for “Individual Voluntary Arrangement”. It is a formal agreement that you make with the people you owe money to. It is organised and managed by an Insolvency Practitioner (IP).
How long does an IVA last?
Although there is no official set length for an IVA. They usually last for 5 years (or 60 months). Some IVA’s can last for 6 years (72 months) if you own a property which needs to be remortgaged.
Will my credit score go up after an IVA?
When your IVA is completed, your credit score will have been affected. But it’s not the end of the world, the IVA will be removed from your credit file and you will be able to rebuild your credit score once again. We would recommend that you do not go out and take out large amounts of credit, as this could lead you to the same situation as you found yourself in originally.
How much does IVA debt advisement cost?
If you seek IVA debt advisement, Insolvency Practitioners do not charge for your initial consultation. This will allow you to learn how much your IVA will cost, how long it will last and explain in full detail the next steps which you will need to take. All debt solutions have advantages and disadvantages, so this is a good opportunity to weigh up your different options and see if an IVA is right for you.
Which charities help with debt?
The Money Advice Service, Step change, Christians Against Poverty, Debt Advice Foundation, National Debtline, Shelter Debt Management are all debt charities. It’s important to know that although some do act as a debt charity, they will still charge fees. Especially when you are looking for an IVA. In some circumstances a debt charity will charge more in fees for an IVA than a private company. So it is always worth calling us to check. The Money Advice Service offer a free service for a lower debt level, which can be very helpful. All charities will have their own charity number, which you can check on their website.
Can I get a lump sum IVA?
Yes, some customers opt for a lump sum IVA. With a lump sum IVA you can pay one lower amount towards an IVA and it will still have the same effect as an IVA which is over five years or six years.
With an IVA over six years, it is usually based over 6 years because a secured loan is set on a property. Rather than have a straight five years, the extra year is for remortgaging the property (or taking out a secured loan on that property).
Although it is rare to see a six year IVA, it does happen now and again.
I don’t know all of my creditors, is this a problem?
Your IVA company can check with credit reference agencies to see which companies you owe money to. They will be able to work out your living costs and get a full view of your debt problem.
What is an Insolvency Practitioner?
An Insolvency Practitioner is responsible for setting up and managing IVA’s (Individual Voluntary Arrangements, or an IVA for short. IVAs are a way of consolidating all of your debts into one affordable payment. Insolvency Practitioners are usually registered on the gov.uk website or the FCA website and you can ask for their registration number to check this. If they are registered with a charity, they should have a charity number to back this up. The charity number will usually be a number between 4 and 7 numbers long.
An Insolvency Practitioner does not typically work on debt management cases.
My job has been affected by Covid 19, can you help?
Covid 19 has affected thousands of people and our IVA companies are highly experienced in helping people who have been affected, whether this is temporary or permanent. You can still take out an Individual Voluntary Arrangement even if you are furloughed from work. Is it likely that the IVA will be based on your current circumstances.
Your Individual Voluntary Arrangement would be reviewed every year to make sure that it is still affordable for you.