Stop all creditor contact now and write off your debt with an IVA, from £70 per month
What is an Individual Voluntary Arrangement (IVA)?
An Individual Voluntary Arrangement (IVA) is a UK debt solution for those struggling to repay their unsecured debts. It’s a formal agreement made between you and the people that you owe money. It is managed by a qualified Insolvency Practitioner (IP).
An IVA allows you to pay back a small percentage of your total debt, in affordable payments that are based on what you can afford.
After the fixed-term of your IVA is completed your remaining debt is completely written off.
Are you eligible for an IVA solution?
You can find out in just a few minutes – simply click the button and get started for FREE.
Here at IVA Advice, we provide free, qualified advice to help you solve your debt problems for good. With many years of experience and a team of friendly experts to chat with, you can rely on us to help you reclaim financial control.
Are you feeling overwhelmed by your current debts?
Perhaps you’re looking for a repayment solution that doesn’t involve bankruptcy or losing your home? An IVA could be the perfect solution…
Here’s How an IVA Can 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 Individual Voluntary Arrangements (IVA’s) 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).
Get started for free with our quick online debt test
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.
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
- 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.
- Your arrangement is formalised and you make one low payment into your IVA every month, to a licensed insolvency practitioner 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 Do I Need for an IVA Debt Solution?
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 IVA.
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 and IVAs both deal with insolvency issues and are both legally binding formal debt solutions, but they work in different ways. With bankruptcy, your home could be repossessed and your assets seized. Plus, your bank accounts would be frozen and deductions may be taken from your future earnings. Bankruptcy also costs around £800 and is publicly advertised. 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 debts, 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 an Individual Voluntary Arrangement (IVA).
And if you’re struggling to make debt repayments, 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. Get in touch for a free consultation.
Thankfully, applying for an Individual Voluntary Arrangement (IVA) has never been easier. Contact us now for free debt advice and take control of your finances by calling our free phone number 08002335753.