IVA FAQs

Why have I not heard of an IVA?

With the increasing debt situation in the UK, IVAs have caught the public and media attention. Over 40,000 people enter IVAs each year. IVAs are a highly regarded, ethical and moral way to deal with debt problems whilst avoiding bankruptcy.

Who can enter into an IVA?

Any insolvent individual who cannot repay their debts can apply for an IVA as long as their disposable income is over £180. However if your income is unstable then it may not be appropriate to do an IVA.

Call the debt solutions helpline on: 0845 519 6093

What if my creditors don't agree?

Don’t worry as long as 75% of the debt accepts the IVA, then the IVA will get accepts even if some creditors vote against it.

What if my creditors aren’t all in favour?

If your creditors don't all vote in favour you still have the option of bankruptcy or an informal arrangement with your creditors.

Will my credit rating be affected?

Yes. If you undertake an IVA, you will have to give up all your current credit (e.g. credit cards and store cards) and you will not be allowed to take additional unsecured borrowings until your IVA is completed. However you will be allowed to use pre paid cards.

How will an IVA affect my current credit?

Your current credit (e.g. credit cards and store cards) will be inactive and you will not be allowed to take additional unsecured borrowings until your IVA is completed. In fact, it is possible to take or change a mortgage even while you are still within an IVA but you will need to make sure you get the advice of your Insolvency Practitioner for this.

Will my home be safe?

When you are in an IVA you won’t have to sell your property. However you may be required to release equity by taking out a remortgage in the last year.

Who pays the IVA fees?

The creditor pays the IP to manage the IVA on their behalf. During the course of the IVA your contributions will go towards a creditor pot. The money in the pot will be handed over to the creditors at yearly intervals, and at the end of the 5 year term all outstanding debts are written off. This pot is looked after by the IP. Once the IVA has started this pot does not belong to the debtor but to the creditor. IP fees are agreed to and paid for by the creditor out of this pot.

How much will I have to pay Into my arrangement?

This figure will depend on your personal circumstances and will be agreed between you, the IP and your creditors. Normally the monthly payment will not be below £180.

Can debt solutions help me get out of debt?

YES we can. Everyone’s personal situation is different and each debt solution is different so we need to work out which will best suit your financial needs.

We will complete a FREE 20 minute fact find with you to work out what your earning and spending and this will let us know how much you can afford to pay to your creditors and also which debt solution is best for you to help you get out of debt. You are under no obligation but I am sure you will be 100% happy with what out debt advisors can do for you and we have the lowest debt managenent fees in the industy

We pride ourselves in our friendly, professional approach to finding the right debt solution for every one of our clients, which is honest, confidential and always the ‘best advice’ based on your individual circumstances.

If you would like to speak to one of our friendly, professional debt experts about any of our debt solutions you can either call our debt solutions helpline on: 0845 159 6093 or complete our online contact form and one of our debt advisors will call you back within the hour.

Start you debt free life today! with one of our debt solutions.

Debt Management | Individual Voluntary Arrangement | Protected Trust Deed | Bankruptcy

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