IVA - (Individual Voluntary Arrangement)

An IVA (Individual Voluntary Arrangement) is a formal debt solution that allows people with serious debt problems a chance to repay to their creditors using an affordable monthly payment.

An IVA has a fixed time period, normally 60 months, after which the IVA is completed. Any outstanding debts at the end of the IVA will legally written off leaving the applicant "DEBT FREE". An IVA normally reduces a clients debt by 70%.

An IVA is a great debt solution for those people being harassed by creditors as with an IVA your creditors by law must stop any Letters, Telephone calls, Baliff action and court action, however an IVA can only deal with unsecured debt, so Mortgages, Car Finance and Guaranteed Debts can not be included.

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PROTECTS Your assets in the IVA, such as equity in your home, by preventing your creditors from forcing you to sell up in order to pay them back

FREEZES all the interest payments on your unsecured debts including your credit cards and store cards.

WRITES-OFF any of the debt you can't afford to repay within a fixed time frame, immediately giving you light at the end of the tunnel.

PREVENTS legal action from being taken against you, removing the threat of bailiff action and bankruptcy.

TACKLES any unmanageable debt levels above £12,000 and deals with all your loans, credit cards, store cards and other unsecured debts in full.?

STOPS unfair late payment charges and fees, giving you the reassurance that you debt has stopped growing.

How can an IVA help Me?

Your IVA (Individual Voluntary Arrangement) will allow you to reduce your normal monthly debt repayments to a single affordable monthly payment.

Your IVA will give you legal protection from your creditors, whilst you only repay what you can afford, giving you peace of mind. Once the IVA is agreed there will be no-more CCJs and no bailiff visits.

Unlike an open-ended Debt Management Plan, your Individual Voluntary Arrangement will have a fixed time frame which is normally 5 years, giving you the assurance that there will be light at the end of the tunnel for your debt problem.

Once your IVA has been agreed by your creditors, you are guaranteed to be "DEBT FREE" at the successful completion of your IVA.

What's more, an IVA is often referred to as a private agreement because, unlike bankruptcy, it is not mentioned in the press, giving you the opportunity to keep your Individual Voluntary Arrangement between just you and your creditors.

IVA Pros - Advantages

You will pay into your IVA what you can actually afford to pay. Your creditors can’t expect you to pay any more than you can afford (subject to a minimum payment).

An IVA will last for a fixed time period, which is normally 60 months.

An IVA will protect your assets, such as equity in your home.

An IVA is legally binding and once in place it will stop your creditors from taking any further legal action against you, even if that creditor didn’t vote in favour of your IVA.

Creditors lose the right to charge you any interest on your debts once your IVA is place.

Once an IVA is in place creditors can not apply any extra fees, including late payment charges or arrears.

Once an IVA has been accepted, your creditors must have no more contacting you directly.

Unlike in a bankruptcy, an IVA is NOT published in the national or local press.

An IVA will write off any debt that has not been paid in the 60 month term.

IVA Cons - Disadvantages

An IVA will impact on your credit rating for 6 years from the moment it is accepted.

You will be expected to pay an windfalls or inheritance you may receive into the IVA.

You will have an annual review and any extra income will be taken into consideration for the payments to the IVA.

You will not be allowed to have a bank account with an overdraft, a credit card or Cheque book whist on the IVA.

You can’t cancel an IVA because all IVAs are legally binding agreements you must maintain the payment for the full term.

IVA Process

Step One: The Consultation - One of our friendly, professional IVA experts will establish whether an IVA is your best option. We will do this by completing a full fact find with you this will give us a snapshot of your income, expenditures and creditor details. Once we have analysed your financial position in detail, we will discuss all the options you have open to you, and determine whether an IVA is your preferred choice.

Step Two: The Proposal - Once you have decided to apply for an IVA we will start the IVA process together. All the relevant information will be collected and prepared and your IVA proposal will be made ready to be presented to your creditors.

Step Three: The Agreement - Your creditors meeting will be arranged, during which your creditors will cast their vote as to whether they agree to accept your IVA proposal. When the required majority agree to accept your IVA proposal – the IVA is considered accepted.

Step Four: Your IVA - Your creditors agree to accept your IVA. All interest is immediately frozen, all charges and late payment fees are stopped and creditors must refrain from contacting you regarding your debts. You are now legally protected by the IVA and your creditors forfeit any right to take legal action against you, ensuring your home and any other of your assets are safe.

Step Five: Debt Free - Once you have successfully completed your IVA, any unpaid debts and outstanding balances so far left unpaid by your IVA payments will be legally written-off and you will be completely debt free.

The whole IVA process takes anywhere between 4 to 6 weeks and you should not make your first payment until your creditors have accepted the IVA

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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