Individual Voluntary Arrangements (IVA)
With an IVA, you can consolidate your unsecured debts into one easy and affordable monthly payment.
You freeze all of the interest and charges on your debts so they do not get any bigger, then you make payments into your plan for 5 years. You will pay back a small percentage of your debt over 5 years. At the end of the 5 years, your remaining debt is completely written off and you are instantly debt free.
People that qualify for an IVA have these 4 things in common:
First, they have over £5000 of unsecured debt. Unsecured debts are not secured against a house or a car.
Second, they owe money to 2 or more people. These people are also known as ‘creditors’.
Third, they will have a regular income of £800 or more per month in their household. This can be a joint income with their partner, or comprise of benefits, pension payments or money from anything else (as long as it can be relied on every month).
Fourth, they will be willing to pay £90 or more into their arrangement.
An IVA is a legally binding agreement with the people that you owe money to.
To get an IVA, you will need a professional known as an insolvency practitioner.
To become debt free, use our free IVA calculator now:
- You make one affordable monthly payment, based on your income and outgoings.
- You will have allowances for the important things that you need, such as food and childcare. Suddenly, you won’t have to cut essential items out of your life.
- You can stay in your home.
- When you are in your IVA: debt collectors, bailiffs and your creditors are not allowed to contact you by law.
- An IVA is a formal arrangement, backed by the Government and UK law (the Insolvency Act).
- All charges and interest will be frozen.
For full details on IVA pros and cons click here.
So, how does it work?
- Before applying for an IVA, you need to check if you are eligible by using our free IVA Calculator.
- If an IVA is right for you, our professionally trained advisors will run through an income and expenditure to check how much you can afford to repay per month. Allowances will be built in to make sure all your important spending areas are included. Such as: food, housing, bills, mobile phones, TV and entertainment, childcare etc.
- This amount is offered to your creditors in a formal proposal, which we will prepare for free on your behalf.
- They accept this payment offer and your plan begins.
With an IVA, you will only ever pay back a monthly repayment that you can afford now, and in the future. Making an amazing improvement to your lifestyle.
Assessing your finances
Where are you now with your finances?
An initial assessment is a great opportunity for you to look over your finances with a professionally trained debt advisor, free of charge. The people that you owe money to will not be notified that you are seeking debt advice.
You will find the difference between your debt situation now and whilst you are in an arrangement is startling!
It is really important to understand exactly where you are with your current financial situation.
Why is this important?
It is important to seek advice as soon as you possibly can when you have debt problems. This is because the interest and charges, if not stopped, can lead to a situation which cannot be controlled further down the line. Sometimes this will lead to bankruptcy, which can have a number of negative consequences. Taking control of the situation will put your mind at rest that there may be a way out of your current situation.
Interest and charges build up quickly on your debts, if you do not tackle them head on. With an IVA, you can suddenly find yourself in a position of control which you have not felt about your finances before. This will allow you to plan for the next 5 years and beyond.
An assessment will give you a chance to ask questions, some common questions we are asked are:
- Is my debt situation temporary?
- Could I borrow money to pay off my debts?
- Would a debt solution be a better solution to my current financial difficulties?
- Which is the best IVA company?
- What if the IVA fails in the future?
- Can I keep my house?
Want to know the best part?
There are absolutely no upfront fees to pay when arranging your IVA.
Here’s the kicker:
When you take out an IVA, you will not be allowed to get any further credit whilst you are in your IVA. You will be allowed to get credit when your IVA has finished, at the end of the 5 years although you may find that your credit score and credit rating has been affected.
What are my assets?
Assets are items of significant value.
An Insolvency Practitioner is not going to be interested in taking control of your assets, like they could in bankruptcy. But if you do have significant assets, they may ask you to sell them or if it is a house, release value from them to pay towards your debts.
Assets which are considered during an IVA are usually houses, cars and land. If you own your house, they may request that you value your house in the final year of your arrangement to see if any money can be released from it.
You will never be asked to sell your home, when you are in an IVA.
What debts can be included?
OK, it gets better:
Debts which can be included in your new IVA are wide ranging. As long as they are not secured against a house or car, there is a good chance that we can include these in an arrangement. Some examples of unsecured debts which can go into a plan are:
Credit cards – like Capital One, Barclaycard, Debenhams Mastercard, American Express, Vanquish, Aqua, Saga etc.
Unsecured loans – like Natwest personal loans, Yorkshire Bank loans, AA Personal Loans, Post Office Money Personal loans, Tesco unsecured loans, Marks and Spencers personal loans etc.
Council tax debts – if you have council tax debts, these can be included with some councils. Although you will need to act quickly as the council reserve certain rights which allow them to collect their debts more aggressively.
Catalogue debts – such as La Redoute, JD Williams, Littlewoods, Freemans, Very etc.
Bank overdrafts – to include these, you may want to switch who you bank with.
Payday loan debts – such as Wonga, QuickQuid, Lending Stream, Payday UK etc.
Money owed to HMRC – such as benefit overpayments and tax credits.
Debts from old landlords – Rent and mortgage arrears from your current home can not be included within an arrangement. If you do not live in the house any more, then these can be considered.
OK, how do I set up my IVA?
Once you have confirmed that you are eligible for an IVA through our IVA calculator, our advisor will run you through the process. In the first instance, they will ask you to see some evidence of your debts and proofs of identification.
You will need to provide the following documents:
- Your last months bank statement.
- Your most recent payslip or a summary of your earnings.
- A proof of identification. A driving license or passport is fine.
We accept document via Whatsapp/email or post. Our preferred method is Whatsapp as it offers end to end encryption, which guarantees your documents will not be intercepted or interfered with.
Our advisors will always:
- Keep your personal information securely and safely.
- Keep your financial situation 100% private, in all circumstances.
- Let you know the most appropriate debt solution for your situation.
- Give you a direct point of contact, that you can speak to in confidence.
- Make sure that you are paying the very minimum that you have to.
You are not alone!
Contact us for a free and confidential chat today.