IVA (Individual Voluntary Arrangement)
If you cannot afford to repay your debts you may be eligible for an IVA (Individual Voluntary Arrangement). An IVA allows your debts to be cancelled so that they never have to be repaid. Up to 90% of your debts could be written off. This may sound too good to be true – but it is true.
With an IVA you cannot be contacted by creditors such as banks or credit card companies. They can only talk to the insolvency practitioner managing your IVA. All threatening letters stop and interest is no longer added to your debts.
An IVA is a government scheme designed to get people out of debt. It is for those who cannot repay their debts. An IVA also helps creditors because it saves them time chasing debts that can never be repaid.
What Is An IVA?
An Individual Voluntary Arrangement (IVA) is a legal agreement drawn up between the person in debt, all creditors to whom money is owed (banks, credit cards etc) and a Licensed Insolvency Practitioner.
It is a legal process by which your creditors cannot pursue you for payment of your debts outside of the agreement.
In an IVA you agree to pay a single, reduced, affordable, monthly payment for a period between 3 and 5 years after which the unpaid part of the debt is written off by the creditors. The creditors are aware of this and are in agreement with it.
What you pay each month is what you can afford. You are left with enough money to enjoy live comfortably.
With an IVA it may be possible to cancel 90% of your debt legally.
Getting An IVA
The person in debt contacts an Insolvency Practitioner and asks them to draw up an IVA for them. In drawing up the IVA the Insolvency Practitioner works out how much the person in debt can reasonably afford to pay back each month.
The Insolvency Practitioner then contacts all those who are owed money (eg banks, credit card companies etc) and asks them to accept that this is a sensible arrangement.
When the proposed IVA is accepted by all parties the person in debt simply makes the agreed monthly payments for a fixed period of time, usually 5 years. After this time the remaining debt is cancelled.
Are You Eligible for An IVA?
You must be a private individual (not a company).
Your debts must exceed £15,000. If your debts are less than this we can still help you (but it is not likely to be beneficial for you to do an IVA) so please contact us.
You must have a regular income.
You can be a home owner or a tenant.
Your Role In An IVA?
You provide us with information on…
1. Your household income and expenditure.
2. Any assets that you own including your house, cars, policies etc.
3. A full list of all of your creditors including store cards, loans, catalogue debts, unpaid utility bills etc.
You will not need to contact your creditors. We do that.
Once the individual voluntary arrangement is agreed you will need to make the agreed monthly payments for a period of 3 to 5 years.
Our Role In An IVA
We will discuss your circumstances with you and once we are satisfied that we have all the information that we need we will prepare your proposal for consideration by your creditors.
As part of the individual voluntary arrangement agreement we will ensure that you will have enough money to live on and enjoy a reasonable lifestyle.
Once the individual voluntary arrangement has been drawn up and signed by everyone concerned we will implement the arrangement and administer it.
An IVA takes about 6-8 weeks to set up.
We offer an ethical approach to helping people in debt and our advice is FREE
After this period you are debt free
Creditors’ Role In An IVA
Your creditors’ role is to negotiate with us, not you.
They must decide whether to…
1. accept your proposal
2. reject your proposal
3. accept your proposal subject to conditions
Once the proposal is accepted they must freeze all interest & charges and stop demanding money from you. You can look forward to a debt-free and bright future.
You must live in England, Wales or Northern Ireland.
If you live in scotland we can still help you with the scottish IVA equivalent known as a Trust Deed.