IVA Help
What is an IVA?
- An IVA (Individual Voluntary Arrangement) is a useful way of clearing your debts of over £15,000 and returning your financial status to positive figures.
- An IVA is a more formal way of escaping debt problems than other methods such as debt management.
Is an IVA right for me?
- An IVA may be suitable for you if you have debts for £15,000 or greater in unsecured debt.
- You should have a regular income and at least £200 per month available to contribute towards your IVA.
- In addition, you should owe your debts to at least three different organisations.
How does an IVA work?
- A formal agreement is made between the debtor and the creditors which includes the amount that will be repaid on a monthly basis and the duration for which the debt will be repaid (usually five years).
- A licensed insolvency practitioner must be involved in the creation of the IVA because of its legally binding nature.
What are the Benefits of an IVA?
- An IVA is not made public, so your debt problems can be kept private from your family and friends, eradicating the social stigma that can become attached.
- You will be debt free once your IVA process has been completed.
- An IVA will allow you to retain your current account, but without an overdraft.
- Up to 75% of your debt could be written off when you sign up to an IVA.
- Your creditors will not be able to contact you and you only have to pay back what you can afford.
- You will also gain protection from court action and your credit rating will begin to recover.
- You will be able to continue to trade with an IVA.
What are the Drawbacks of an IVA?
- The period by which you are obliged to repay your debts is over five years as opposed to bankruptcy which lasts just one year.
- Some of the equity of your property may need to be released to cover part of the IVA deal with creditors.
- You won’t be able to gain approval for an IVA without £15,000 of debt owed to at least three creditors.
- Although it’s a great deal and provides an excellent route to debt freedom, you will be tied down to the obligations for five years.
- Failure to complete your IVA process can result in bankruptcy.
When can I get IVA advice?
- You can call the IVA helpline any time; 24 hours a day, 7 days a week, 365 days a year.
- An IVA can be the best solution for you to avoid bankruptcy. However, ultimately the best solution for you to use to get out of debt is the one that fits your life and goals the best.
- Many people do not know the benefits of an IVA compared with other debt solutions such as debt management, debt consolidation, or even bankruptcy. Our aim is to provide the best debt solution for you, and our friendly advisors are available 24/7 to answer your questions.
How can I get debt advice?
- Freephone: 0800 074 6918
- Email: info@e-insolvency.co.uk
