IVA: Reduce all your debts to £70 per month [Fast, Free and Easy Help] (original) (raw)

What is an IVA?

An Individual Voluntary Arrangement (IVA) is a debt resolution strategy designed for individuals who are struggling to repay their unsecured debts. It is a formal and legally binding agreement between you and your creditors, managed by a qualified Insolvency Practitioner (IP), who is often referred to as the “IP.”

An IVA enables you to repay a portion of your total debt based on your affordability, allowing for manageable monthly payments. IVA payments are calculated based on your financial situation, including factors like pensions and changes in income, and can fluctuate accordingly. Any remaining unaffordable debt will be entirely written off upon the successful completion of the IVA’s fixed term.

Eligibility for an IVA Solution:

At IVA Advice, we offer complimentary, expert information to assist you in resolving your debt issues permanently. Our years of experience and a team of dedicated professionals ensure that you can rely on us to help you regain your financial stability.

To determine your eligibility for an IVA in just a few minutes, simply click the button to get started. Our friendly experts are available to provide support and advice tailored to your unique financial situation. sound good? let’s check if you are eligible

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Are you seeking a debt repayment strategy that avoids the consequences of bankruptcy and safeguards your home from repossession? An Individual Voluntary Arrangement (IVA) might be the ideal solution for you.

An IVA is a legally binding agreement between you and your creditors, designed to help you manage your unsecured debts without resorting to bankruptcy. It allows you to make affordable monthly payments over a fixed period, typically 5 to 6 years, based on your financial circumstances. At the end of this period, any remaining outstanding debt is written off.

Not only does an IVA protect your home from being repossessed, but it also prevents further legal action from creditors, as long as you adhere to the agreed-upon terms. Additionally, an IVA can help improve your credit rating over time, as you demonstrate consistent and responsible debt management.

Before considering an IVA, it is crucial to seek expert advice to determine if it is the most suitable option for your financial situation. A qualified Insolvency Practitioner (IP) can assess your circumstances and guide you through the entire process, ensuring you make informed decisions and regain control of your finances.

See How We Can Instantly Help You with Affordable Monthly Payments:

by reducing your debt payments to a minimum of £70 per month by stopping your creditors from contacting you or taking action against you by allowing you to keep your car and stay in your home by stopping all interest and charges instantly by providing a way to become debt-free after five or six years. Just make your payment every month for 60 months and at the end of the term all of your debt balances are written off completely

Note: Record of IVAs will remain on your credit file/credit rating for six years after you formally enter an arrangement. Don’t delay in seeking professional support. The earlier you get debt advice and IVA information, the sooner you can stop making unaffordable payments, and dealing with unwanted visits from bailiffs and debt collectors.

Do I Qualify for an IVA?

If you can answer YES to the above, then you could be likely to qualify for an IVA. If you decide to apply for an IVA, your credit file/credit rating may be impacted and your details will appear on the Insolvency Register (although this isn’t advertised).

What Unsecured Debts Can I Put Into an IVA?

Generally speaking, all of your unsecured debts will be included in an IVA. The most common include:

It is important that the companies you owe money to are voting creditors. Only when 75% or more of your voting creditors agree to approve your IVA, can it begin. To make sure your IVA company have all of your creditors, they will run a credit check. This should show all of your credit agreements including your secured loans, mortgages, credit cards and payday loans. Your IVA must include all of your unsecured creditors, not only ones which appear on your credit search. Once the arrangement is agreed, it is difficult to add extra debt in, so please make sure all of the details of your debt is available today so the terms of the services available can be discussed in detail.

It may not include any court fines, student loans, council tax arrears, child support arrears, previous individual voluntary arrangements or parking charge notices that may need to be included in your IVA.

What Debts Can’t Go into an IVA?

How Do I Apply for an IVA (UK) with an Insolvency Practitioner?

Interested in how you can set up an IVA? Here is the process…

Consider all of the pros and cons and decide whether you should apply for an IVA.

Use our free IVA payment calculator – it’ll run you through the basic qualifying criteria and let you know if you’re eligible. One of our friendly advisors will review your debts and provide you with free advice to determine if an IVA is the best option for you.

We’ll help you create an IVA proposal to formally apply for an arrangement.

Voluntary arrangements are formalised and you make one low payment into your IVA every month, to licensed insolvency practitioners in the UK. At the end of the 60 months, the remainder of your debt will be written off in full and your IVA will be complete.

A legislated debt solution such as an IVA could give you your life back and pave the way to a happier, debt-free future for you and your family. So contact us now for free, independent .

What Information do I need for an IVA?

When you first get started, you won’t need to provide anything. The purpose of the initial call is to get a feel for your debt situation and to point you in the right direction.

An IVA isn’t always the most suitable option, and you may be guided towards a debt charity, such as the Money Advice Trust, Money Advice Service or the Citizens Advice Bureau for debt advice. You will not always be recommended a formal debt solution. If you are recommended an IVA, you may be in touch with a member of the Insolvency Practitioners Association (IPA) or a company which is authorised by the Financial Conduct Authority (FCA). But at present, IVA companies do not need to register with the FCA, as they are not responsible for regulating IVA’s.

Note – If you decide to go to a charitable enterprise, they will still charge fees/costs for setting up and managing an I V A.

If you do decide to apply, here’s what you’ll need to provide:

– payslips – 3 months payslips will be requested to provide proof to the Insolvency Practitioner of your earnings. If you’re not employed, then evidence will be needed for how you receive your income. This is important as we’ll need to prove that you can maintain payments towards your debts for the 5-year term. Your payslip should clearly show your full name and national insurance number. This also gives the Insolvency Practitioner an opportunity to check your employment status.

– bank statements – 3 months statements are needed to show all of your outgoing payments. Online statements are usually fine, as long as they clearly display your sort code and account name alongside your name and address.

– proof of identification – A driving license or passport is fine here. Sometimes you can use a National Insurance document is you do not have a driving license or passport. You can provide a copy of this by post, Whatsapp, or through email.

You’ll be able to go through all of the document requirements in more detail at your free telephone insolvency appointment, so don’t worry if you think you may struggle to provide one of the above.

IVA Costs and Fees

When considering an IVA, it’s essential to understand the costs and fees involved. While an IVA can help you write off a significant portion of your debt, there are fees associated with setting up and managing the arrangement.

Firstly, there’s the Nominee’s fee, which is typically charged by the Insolvency Practitioner (IP) for setting up the IVA proposal. This fee can range from £1,000 to £2,000, depending on the complexity of your case. The IP will draft the IVA proposal and negotiate with your creditors to get the arrangement approved.

Next, there’s the Supervisor’s fee. This fee is charged by the IP for managing the IVA over its lifespan. It is usually a percentage of the monthly payments you make, ranging from 15% to 20%. The Supervisor’s fee covers the ongoing administration of the IVA, including distributing payments to your creditors and ensuring the terms of the IVA are adhered to.

Additionally, there are disbursements, which are costs incurred by the IP for managing the IVA, such as postage, stationery, and other expenses. These disbursements can range from £1,000 to £2,000 over the course of the IVA.

It’s essential to note that these fees are deducted from the monthly payments made into the IVA, and not in addition to them. This means that your monthly payments will cover both the repayment of your debt and the fees associated with managing the IVA.

Working with an Insolvency Practitioner

An Insolvency Practitioner (IP) plays a crucial role in setting up and managing an IVA. The IP is responsible for guiding you through the entire process, ensuring that the IVA is the best debt solution for your financial situation.

The IP will start by assessing your financial situation to determine if an IVA is suitable for you. They will review your income, expenses, and debts to create a realistic and affordable IVA proposal. This proposal outlines how much you can afford to pay each month and how the remaining debt will be handled.

Once the IVA proposal is drafted, the IP will present it to your creditors and negotiate the terms of the arrangement. They will work to get the proposal approved by at least 75% of your voting creditors. If approved, the IP will manage the IVA over its lifespan, collecting your monthly payments and distributing them to your creditors.

Throughout the IVA, the IP will review and update the arrangement as necessary to ensure it remains affordable and effective. They will also provide ongoing support and advice to help you stay on track with your payments.

When working with an IP, it’s essential to ensure they are authorized and regulated by a professional body, such as the Insolvency Practitioners Association (IPA) or the Financial Conduct Authority (FCA). This ensures that you receive professional and ethical service throughout the IVA process.

IVA and Creditors

An IVA is a legally binding agreement between you and your creditors, designed to provide a fair and affordable way for you to repay your debts while protecting your assets.

Creditors play a crucial role in the IVA process. They must agree to the terms of the arrangement, including the monthly payments and the amount of debt to be written off. For the IVA to be approved, at least 75% of voting creditors must agree to the proposal. This means that the majority of your creditors need to be on board for the IVA to proceed.

Creditors benefit from an IVA as it provides a structured and predictable way for them to recover a portion of the debt owed to them. Instead of dealing with multiple, potentially unreliable payments, creditors receive a single, consolidated payment each month, managed by the Insolvency Practitioner.

Creditors also have rights within the IVA process. They have the right to reject the IVA proposal or request changes to the terms of the arrangement. This ensures that the IVA is fair and reasonable for both parties.

By understanding the role and rights of creditors, you can better appreciate the collaborative nature of an IVA and how it can provide a mutually beneficial solution for managing your debts.

Living with an IVA

Living with an IVA requires discipline and commitment, but the benefits far outweigh the challenges. Here are some essential things to consider:

Firstly, you must make regular monthly payments into the IVA, as agreed upon in the proposal. These payments are based on what you can afford, ensuring that they are manageable within your budget.

Budgeting is crucial when living with an IVA. You must stick to a budget and avoid taking on new debt during the IVA term. This may require making lifestyle changes, such as reducing non-essential expenses and finding ways to save money.

An IVA can affect your credit rating, making it more challenging to obtain credit in the future. However, as you make consistent and responsible payments, your credit rating can improve over time. The IVA will remain on your credit file for six years, but the long-term benefits of becoming debt-free are worth the temporary impact on your credit rating.

Despite these challenges, the benefits of an IVA are significant. With an IVA, you can write off a substantial portion of your debt, make affordable monthly payments, and protect your assets. By the end of the IVA term, you will be in a much stronger financial position, with the remaining debts written off and a clearer path to a debt-free future.

By understanding the costs and fees involved, working with an authorized Insolvency Practitioner, and being aware of the creditors’ role and rights, you can make an informed decision about whether an IVA is the right debt solution for you.

IVA or Bankruptcy?

Bankruptcy and IVAs both deal with insolvency issues and are both legally binding formal debt solutions, but they work in different ways. With bankruptcy, your home could be repossessed and your assets seized. Plus, your bank accounts would be frozen and deductions may be taken from your future earnings if you become bankrupt.

Bankruptcy also costs a fee of around £800 and is publicly advertised. However, some people find that bankruptcy may have a negative effect on their trade and employment.

But with an IVA:

Getting Started with an IVA

With growing charges and the high rates of interest on unsecured debt, it’s always best to tackle your debt problems head-on, before they get out of control. Often the best way to do this is with a structured, legally-binding agreement like a debt IVA.

And if you’re struggling to make monthly repayments on your debt, it’s important to seek independent debt advice as soon as you can.

We can also help people who have been through redundancy or are furloughed. Call us for a free consultation.

Thankfully, applying for an IVA has never been easier. Contact us now for free and take control of your finances.