IVA - INDIVIDUAL VOLUNTARY ARRANGEMENT

IVA * individual voluntary arrangement * IVA advice * Trust Deeds * individual voluntary arrangements * debt problems * bankruptcy solutions * refused a loan * financial solutions * advice * debt consolidation

We tend to get asked the same questions about an individual voluntary arrangement (IVA), debt management programmes and bankruptcy.

We don't mind answering these questions but it may help you if you have a better understanding of how and individual arrangement could help you solve your debt problems.

1. How can I tell if I will qualify for an IVA?
If you have unsecured debts of more than £10,000 and you owe them to more than three creditors and you can afford to pay at least £200 per month for the next 5 years from your disposable income, you will qualify for one of our individual voluntary arrangements. An IVA is suitable for anyone determined to avoid being made bankrupt. Unlike being declared bankrupt, your business activities are not limited and if you are a professional person, you can enter into an individual voluntary arrangement without prejudicing your employment possibilities. Your IVA will not become public knowledge and will remain confidential. Only your creditors will know that you have entered into an IVA in order to prevent them harassing you.

2. What is an IVA
The letters IVA stand for Individual Voluntary Arrangement. An IVA is a government approved scheme that enables someone who is genuinely struggling with debt the opportunity to make a formal proposal to their creditors to clear their debts within 5 years. This is a better option for a creditor then their debtors being made bankrupt. Your IVA is a formal contract between you and your creditors. You will need to pay an agreed monthly sum, usually for 60 month after which time, you should be considered to be debt free. The monthly payment is divided between your creditors, who accept the sum in full settlement of the amount you owe. These are some of the main advantages to someone who has opted for an IVA.

• On the successful completion of an IVA your are guaranteed to be debt free after 60 months
• An IVA can be used to write off up to 75% of debt
• One affordable monthly payment based on what you can afford
• Interest is frozen, penalties and charges are stopped
• Homeowners and tenants are both eligible for an IVA

On successful completion of the 60 months, you do not owe any further money - guaranteed!

The remainder of your debt is written off, and you have a fresh start! An IVA is a repayment plan and you make payments to it. Therefore you need to be employed and to have enough spare residual income to make these payments. You should never enter an IVA unless you are absolutely sure you can comply with the repayment terms and are committed to avoiding bankruptcy.

3. How much will an IVA cost me, and if the IVA is turned down, how much do I owe you?
We don't charge you any fees since these are agreed with and paid by your creditors as part of the IVA. We do NOT take upfront fees. So there is no risk to you in terms of being out of pocket. If your IVA is not accepted, then you do not pay a penny. Instead we seek other debt solutions for you.

4. How long will it take to set up my IVA?
We will start the process immediately on your behalf as soon as we receive your call, and we would expect it to take between 6 and 8 weeks for your IVA solution to be in place.

5. Will I need to meet you or take time off work?
No, you will not need to be present at any meetings. In most cases, all the work will be done over the telephone. However, if you would like a meeting in person, this can also be arranged.

6. Will my property be safe under an IVA?
Yes. Your IVA proposal will contain no requirement upon you to sell your property. If you have equity in your house then you will not usually have to sell your property.

7. Will I be able to get credit again?
Yes, you should be able to. When your IVA has successfully run its full course, your credit rating is likely to be repaired quite quickly. Once your bad debt problem has been settled, it should be easier to obtain credit. You should also find that many lenders will regard a successfully completed IVA as an example of good payment history.

8. What is a Debt Management programme? A debt management programme is an arrangement between you, the creditors, and a Debt Management company who agree to supervise and distribute your debt repayments to your creditors. A debt management programme is normally a possible solution for unsecured debts ranging between £5,000 and £15,000. It is important to understand, however, that unlike an IVA, Debt Management is not a legally binding agreement. It does not legally bind you, or the debt management company, or your creditors. You therefore have no legal protection against your creditors and you may end up paying back more. A debt management plan should be approached with caution and perhaps be considered only as a short-term solution, depending on your personal financial circumstances.

9. What is Bankruptcy?
Bankruptcy is a legal process where you are forced to sell your assets and the funds are used to pay your creditors. However, with bankruptcy, you will appear in the local press, your landlord would most likely be informed, and members of certain professions will have a risk of losing their job. In addition it is highly likely that your bank accounts will be suspended. You will not be able to obtain credit over £500 and you will not be able to fulfill a managerial or directorial role in a limited company.

10. Is this industry regulated?
If you enter into an IVA, all of the insolvency practitioners are regulated by either the Institute of Chartered Accountants in England and Wales (ICAEW), the Insolvency Practitioners Association (IPA) or the Secretary of State for Trade and Industry.

IVA * individual voluntary arrangement * IVA advice * Trust Deeds * individual voluntary arrangements * debt problems * bankruptcy solutions * refused a loan * financial solutions * advice * debt consolidation