An IVA can help you to resolve your unsecured debt without having to declare bankruptcy. All you need to have is a regular household income and live in England, Wales or Northern Ireland. An IVA (Individual Voluntary Arrangement) is a formal agreement between you and your creditors, the people to whom you owe money, to pay all or part of the debts you have with them. These arrangements are set up professionally by an authorised Insolvency Practitioner (IP) and as such there are professional fees that will have to be paid to enter into an IVA. An IVA will typically last for a five year period during which you will pay a percentage of your debt back. With an IVA in certain cases, you can have up to 75% of your debt written off.
All your unsecured debts will be consolidated into one, affordable monthly payment which can start from as low as £70.00 a month, dependant on your circumstances. This allows you to organise and take control of your finances by writing off the unaffordable debt and freezing interest. This has been a popular alternative to bankruptcy since the mid-1980s. The typical duration of an IVA is five years. In this time, you can start to make ends meat again and manage your money, knowing you are making a single affordable payment.
In just a few steps from making the first call, you could be on the road to controlling your unsecured debt. Typically you should expect the process of setting up an IVA to take around six weeks. However, the main thing to remember about the process of getting an IVA is that the Insolvency Practitioners are there for you every step of the way.
From the initial telephone call you will discuss how an IVA works, whether its right for you based on the information you have provided. If an IVA is right for you then paperwork will be sent out for you to read through carefully, complete the creditor commitment form with the details of the creditors of whom you owe money to, sign and date the letter of authority and send back straight away in the pre paid envelope provided along with the relative documents required which will be confirmed on the phone for you and also in the paperwork.
On receipt of the paperwork where you will be called to confirm this, a brief questionnaire will be completed then your case will be referred to the Insolvency Practitioner, letters are then sent to your creditors to confirm that the company acting on your behalf will be proposing an IVA. Proposals are then drawn up to be sent to your creditors to set up the appropriate meetings for them to approve the IVA, but will be sent to you first to review, then sign and date and return back to the Insolvency Practitioners as soon as possible.
The majority of your creditors will need to vote in favour of the IVA in order for it to go ahead. This means that creditors holding 75% of the total debt value must agree to your IVA. Once your IVA has been accepted you will be informed straight away. Your IVA then commences and your first IVA payment would be due within 6 weeks.
We do not charge any setup fees for an IVA. Our associate partner Insolvency Practitioner’s will normally take a charge for their service out of your monthly repayments. This is known as the Nominee’s fee and a Supervisory Fee, along with other associated costs, which are born as a cost of your individual voluntary arrangement.
IVA fees will cover
Before entering an IVA:
|Personal loan A
|Personal loan B
After entering an IVA:
|Total Debt Repayment
|Total Debt Written off