IVA’s

For debts over £5000

What is an IVA

An IVA or Individual Voluntary Arrangement is a legally binding agreement between you and your creditors to help repay your unsecured debts without taking out a loan. An IVA will normally last for 5 year and during this period you will be expected to pay a set amount each month that is sustainable over the 5 year period. An IVA requires a Licensed Insolvency Practitioner (IP) to administer your IVA.

See if you qualify for an IVA

An IVA is an agreement suitable for debts over £5,000. It’s based on how much you can afford to pay each month and usually lasts for a 60 month period. Debts included in the IVA are written off at the end of the IVA period!

See if you qualify ➜

Why Use IVA's?

  • Unsecured Debts Written Off – Most your unsecured debts could be written off at the end of the IVA period your debts
  • In 60 Months… Debts included in the IVA will be cleared in usually 60 months
  • Affordable – You could repay an affordable fixed monthly sum

So far so good?

An affordable monthly repayment is just the tip of the iceberg as far as the benefits of an IVA are concerned. Here are some other advantages:

Your home is unlikely to be affected if you have little or no equity in your property.
It allows included debts to be written off at the end of the IVA period.
It freezes your debt level – so you won’t suffer the stress of watching it rise each month.
It makes it possible in 5 to 6 years subject to the types of debts you have.

If that’s not enough to make you smile, then the thought that you’ll have no more calls and letters from creditors should do the trick.

We’ve set it up so our partner company Insolvency Plus Group do the work. One of their licensed Insolvency Practitioners negotiates with your creditors on your behalf, to make the process completely painless for you.

Even if bankruptcy looks like your only option, the IVA throws you a lifeline that works. The whole point is to get you back in control, give you peace of mind and help you kick debt into touch. An IVA doesnt have the restrictions applied as in bankruptcy and could be a better solution to your needs though there will be some restrictions on your expenditure which an advisor will go through with you. IVA’s are not advertised in the press. However, they will be recorded on the insovency register.

So, if you have unsecured debts of £5,000 or above, have 2 or more different creditors and have a disposable income (money to service your debts) of £100 or over and would like to take advantage of an IVA, please use the form to get in touch with us. Simply let us know what time is most convenient for you and we can advise Insolvency Plus Group to call, email or text you.

 

What happens when I apply for an IVA?
If you would be best served by entering into an IVA, our partner company Gopher Money do all the preparatory work for you. After the initial steps have been taken, and they believe you meet the criteria for an IVA, they then pass your case onto an Insolvency Practitioner.They will then act on your behalf in relation to the IVA and the meeting of creditors.

How can an Insolvency Practitioner help me?
An Insolvency Practitioner (IP), with your help, will produce a written proposal.

An Insolvency Practitioner (IP), with your help, will produce a written proposal. The IP will send out notice of the creditors meeting, usually held at the Insolvency Practitioners offices in the absence of both yourself and your creditors. (You do not have to attend a Creditor’s meeting.) Once your proposal has been finalised, the IP, if he deems necessary, will apply to your local County Court for an Interim Order. The Interim Order provides you with valuable protection against debt enforcement such as CCJ’s, Attachment Orders, and even Bankruptcy Orders.

Are there any Disadvantages to an IVA?
Yes. If you are a homeowner and have equity in your property then you may be asked to release some of your equity to help repay your debts. It can be difficult in the current climate to remortgage your property and sometimes you will need to pay a higher mortgage rate to release some of your property’s equity. If you are unable to obtain a remortgage then your IVA can (subject to a creditors meeting) be extended for up to 12 months.
It is also important to note that if you fail to keep up your repayments on an IVA then your arrangement may fail which could lead to bankruptcy. You are likely to face certain restrictions on your expenditure during your IVA period to ensure there is no excessive spending. Afterall – you should be using all your available disposable income to repay your debts.

Only unsecured debts can be included into an IVA. Any secured debts will still be your liability and you should honour your current payment arrangements with these.

What are the Fees for an IVA?

There will be 2 sets of fees you will be required to pay – the nominees and supervisors fees. The nominees fee is usualy around £500 to £2,500 depending on the amount of work involved and other circumstances. The supervisors fee is a monthly fee to cover the work carried out by an IVA administrator. This will be no more than 15% of the total contributions you make over the IVA period.

Exact costs and fees involved will be presented to you before you enter any form of agreements. Such fees are deducted out of the proceeds of the arrangement.

See if you qualify ➜

The Facts

If you are a homeowner and have equity in your property then you may be asked to release some of your equity to help repay your debts. It can be difficult in the current climate to remortgage your property and sometimes you will need to pay a higher mortgage rate to release some of your property’s equity. If you are unable to obtain a remortgage then your IVA can be extended for up to 12 months.

It is also important to note that if you fail to keep up your repayments on an IVA then your arrangement may fail which could lead to bankruptcy. You are likely to face certain restrictions on your expenditure during your bankruptcy period to ensure there is no excessive spending. After all – you should be using all your available disposable income to repay your debts.

Only unsecured debts can be included into an IVA. Any secured debts will still be your liability and you should honour your current payment arrangements with these.