IVA 

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What is an IVA?

An IVA (Individual Voluntary Arrangement) is a formal agreement made between the person in debt and their creditors. Once you enter into an IVA, your creditors can no longer take further action against you to recover any outstanding debts. All interest and charges associated with your debts are frozen.

All IVAs are set up and managed by an Insolvency Practitioner (IP). An IVA is a form of insolvency that can potentially cover up to 90% of your debts. It is an alternative to bankruptcy and other debt solution plans.

In an IVA, a single payment is agreed based on your financial situation. The payment is then divided between the unsecured creditors over a set period of time (usually five years), after which any remaining debts are usually dealt with in a different way.

Once you enter into an IVA, your creditors are legally bound by the terms and conditions imposed by the agreement.

There is no legal maximum or minimum amount you must owe to get an IVA. Usually, however, you must owe at least £5,000 to get your creditors to agree to the IVA. You can owe this amount across more than one debt, with more than one creditor.

An IVA is open to residents of England, Wales and Northern Ireland. Scottish residents can find support in the form of a Protected Trust Deed (PTD).

IVA Facts

78,458

"People entered an IVA (Individual Voluntary Arrangement) in 2020"

Do I Qualify For An IVA?

An IVA (individual voluntary arrangement) is normally only suitable for people who are struggling to maintain payments to their current debts and have a regular income.

In order to get an IVA, you must have spare income after you have met your essential living costs each month.

Your creditors will be obliged to agree to an IVA if you meet the other criteria needed to get an IVA plan. Your insolvency practitioner will be able to offer you more specific advice once they know your circumstances.

In order to qualify for an IVA, you must reside in England, Wales or Northern Ireland. You will also need the minimum requirements:

1

Have £5,000 or More of unsecured debt
2

Owe money to two or more creditors
3

Live in England, Wales or Northern Ireland (live in Scotland? learn more about a Trust Deed)
4

Do you have a regular income? (if you are self-employed? don't worry we can still help you)
5

Maintain a payment of a minimum of £70 per month

Does An IVA Write off Your Debts?

Your unsecured debts will be covered by your IVA (Individual Voluntary Arrangement). When you have completed your IVA, any remaining debts are then legally written off.

It is important to note that not all types of debt can be included in IVA.

If you are concerned that some of your debts might not be included in your IVA then one of our expert advisors will be able to discuss qualifying debts for your IVA.

Example of how an IVA could help you

Debts You Can Include In An IVA?

All unsecured debts can go into an IVA. Here are some examples of the debts you can include:

Credit cards – Vanquis, Barclays, Natwest, Lloyds, HSBC, Tesco, Capital One

Unsecured loans – Barclays, Lloyds, Tesco, Wonga, Adverse Credit Loans

Apply now

Payday Loans – Wonga, Lending Stream, Amigo, Satsuma, QuickQuid

 Catalogue and store card debts

 Credit Cards

 Personal Loans

 Overdrafts

 Gas, electricity, and water bill arrears

 Tax credit/ benefit overpayments

 Debts to family and friends

 Other outstanding bills

 Other outstanding bills

We deal with all Creditors 

What Debts Can’t Go into an IVA?

❌ mortgage arrears – unless you have left the property

❌ rent arrears – unless your landlord agrees to the proposal

❌ debts from secured loans

❌ child maintenance arrears/child support arrears

❌ other secured debts are not allowed in an IVA

❌ court fines

❌ National insurance debt

❌ Limited Company debt

❌ student loans

Can I Include Mortgage and Secured Debts In An IVA?

If there is an instance when your property has been repossessed, then any shortfall from your Mortgage and Secured Loan can be included in an IVA as an Unsecured Debt.

Other debts can technically be included in an IVA, but the lender would have to give their permission for this to happen.

Are you still a homeowner? An IVA can protect your home.

Other secured debts like HP Agreements can be included in an IVA but at the point of entering an IVA the vehicle must have been given back to the lender then any shortfall will be included as debt into the IVA.

Alternatively, if you are keeping your car, an IVA protects this asset and will allow you to continue paying a contribution towards your car for the duration of an IVA.

Do You Qualify For An IVA?

    Your total debt amount?

    Less than £5,000
    £5,000 to £10,000
    £10,000 to £20,000
    More than £20,000

    How many debts do you have?

    2 or more
    less than 2

    Are you behind on payments?

    Yes
    No

    Your current living status?

    Owned
    Rented
    Private Rented
    Living With Parents

    Where do you live ?

    Scotland
    England
    Wales
    Northern Ireland






    Great News! It Looks Like We Can Help

    Check If You Qualify To See The Options Available


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    IVA Pros and Cons

    Pros of An IVA

    ▪️ No upfront fees.

    ▪️ It’s affordable. You only pay back what you can afford and that is normally only an agreed percentage of your debts.

    ▪️ You only make a single payment each month and that payment is distributed to creditors on your behalf.

    ▪️ You can be debt free, usually after 5 years.

    ▪️ All creditors must agree to the terms and conditions of the IVA, once approved. You are protected by the rules and regulations of the agreement.

    ▪️ By law, all interest and charges are frozen as long as you maintain your payments.

    ▪️ Creditors will not be able to excessively pressure you while they are under the influence of the legally binding IVA.

    ▪️ You won’t be forced to sell your home. Your home is a protected asset in an IVA.

    Cons of an IVA:

    ▪️ IVAs can be refused. Your creditors can refuse your IVA proposal but, in most cases, we can negotiate with your creditors to get your IVA approved.

    ▪️ An IVA is a formal agreement. You need to make sure you comply with the terms and conditions attached to an IVA.

    ▪️ Your monthly repayments may leave you with a tight budget while your debts are being repaid.

    ▪️ It will affect your credit score. IVAs remain on your credit file for 6 years from the day they starts. Some IVAs can last longer, however, and this will show on your credit file for longer.

    ▪️ Not all debts can be included in an IVA. Some examples of these debts include student loans, child support and maintenance, magistrate court fines, and social fund loans. However, an allowance can be given to enable you to continue repaying these specific debts.

    ▪️ If you fail to make the payments due under the terms of your IVA then your arrangement could fail.

    How will an IVA affect you?

    What Is An IVA

    learn more about what an IVA is

    How To Apply For An IVA?

    Apply For An IVA Online Today

    How Does An IVA Work

    Learn more about how an IVA works

    What Debts Can I Include?

    Can i include all my debts in an IVA

    Will My Home Be Affected?

    Learn more about how your home is affected in an IVA

    Will My Credit File Be Affected?

    learn more about whow your credit file be affected

    Will My Bank Account Be Affected?

    Will my car be affected in an IVA?

    IVA Cost & Fees

    What is the cost of an IVA?

    Will I Lose My Car In An IVA?

    You will usually be allowed to keep your car if it is seen as a necessity for work or important family transport reasons. However, the car value cannot be too excessive. In an IVA, a car that is valued at less than £5,000 would usually not be of concern to creditors. Anything above that valuation and creditors will argue that it is not cost-effective enough to do the basics.

    Can I Keep My Car On Finance With An IVA

    If you are paying for your car via HP, PCP or leasing then you don’t own the car directly and you will be expected to pay a set of monthly payments.

    Your IVA firm is going to question the payments if they feel like they are too high. They might suggest for you to find an alternative travel solution such as public transport, for example.

    Alternatively, your car finance company could also pull the plug on your arrangement with them. There may be a clause in the contract that allows the provider to end their contract if you go into an IVA solution. Thoroughly read the contract through to see if there are any mitigations to your agreement.

    Do You Qualify For An IVA?

      Your total debt amount?

      Less than £5,000
      £5,000 to £10,000
      £10,000 to £20,000
      More than £20,000

      How many debts do you have?

      2 or more
      less than 2

      Are you behind on payments?

      Yes
      No

      Your current living status?

      Owned
      Rented
      Private Rented
      Living With Parents

      Where do you live ?

      Scotland
      England
      Wales
      Northern Ireland






      Great News! It Looks Like We Can Help

      Check If You Qualify To See The Options Available


      Safe, Secure & Confidential

      Trustpilot logo

      Trustpilot logo

      Frequently Asked Questions

      Who can get an IVA?

      An IVA (individual voluntary arrangement) is normally only suitable for those who have a regular income and are struggling to maintain payments to their current debts.

      In order to get an IVA, you must have spare income after you have met your essential living costs each month.

      Your creditors will be obliged to agree to an IVA if you meet the other criteria needed to get an IVA plan. Your insolvency practitioner will be able to offer you more specific advice once they know your circumstances.

      In order to qualify for an IVA, you must:

      Live in England, Wales or Northern Ireland.

      Have at least £5,000 of unsecured debt.

      Maintain a minimum payment of £70 per-month.

      Which debts can be included in an IVA?

      All unsecured debts can go into an IVA. Here are some examples of the debts you can include:

      Credit cards – Vanquis, Barclays, Natwest, Lloyds, HSBC, Tesco, Capital One

      Unsecured loans – Barclays, Lloyds, Tesco, Wonga, Adverse Credit Loans

      Apply now

      Payday Loans – Wonga, Lending Stream, Amigo, Satsuma, QuickQuid

      Catalogue and store card debts

      Credit Cards

      Personal Loans

      Overdrafts

      Gas, electricity, and water bill arrears

      Tax credit/ benefit overpayments

      Debts to family and friends

      Other outstanding bills

      What are the pros and cons of an IVA?

      Pros of an IVA:

      ▪️ No upfront fees.

      ▪️ It’s affordable. You only pay back what you can afford and that is normally only an agreed percentage of your debts.

      ▪️ You only make a single payment each month and that payment is distributed to creditors on your behalf.

      ▪️ You can be debt free, usually after 5 years.

      ▪️ All creditors must agree to the terms and conditions of the IVA, once approved. You are protected by the rules and regulations of the agreement.

      ▪️ By law, all interest and charges are frozen as long as you maintain your payments.

      ▪️ Creditors will not be able to excessively pressure you while they are under the influence of the legally binding IVA.

      ▪️ You won’t be forced to sell your home. Your home is a protected asset in an IVA.

      Cons of an IVA:

      ▪️ IVAs can be refused. Your creditors can refuse your IVA proposal but, in most cases, we can negotiate with your creditors to get your IVA approved.

      ▪️ An IVA is a formal agreement. You need to make sure you comply with the terms and conditions attached to an IVA.

      ▪️ Your monthly repayments may leave you with a tight budget while your debts are being repaid.

      ▪️ It will affect your credit score. IVAs remain on your credit file for 6 years from the day they starts. Some IVAs can last longer, however, and this will show on your credit file for longer.

      ▪️ Not all debts can be included in an IVA. Some examples of these debts include student loans, child support and maintenance, magistrate court fines, and social fund loans. However, an allowance can be given to enable you to continue repaying these specific debts.

      ▪️ If you fail to make the payments due under the terms of your IVA then your arrangement could fail.

      What's the process of an IVA?

      An IVA (Individual Voluntary Arrangement) was introduced as part of The Insolvency Act 1986, helping debtors to pay off their debts over a set period of time. It acts as an alternative to bankruptcy.

      An IVA is a legally binding agreement made between a debtor and their creditors. Due to the legality and regulations imposed on Insolvency Practitioners, there is a set process each IVA application must follow. You must:

      ▪️Complete A Review & Budget

      ▪️Prepare Your Proposal

      ▪️Create a meeting of Creditors (MOC)

      What's the cost of an IVA?

      An IVA (individual voluntary arrangement) is not free. Legally you cannot set up your own IVA. The insolvency practitioner who will set up your IVA will charge a fee.

      This fee is normally taken as regular instalments from the payments you make towards your IVA (debts). The fee is to cover the cost of the advice offered by the insolvency practitioner, the time spent putting together the legal aspects of the IVA and negotiating with your creditors, also managing the IVA once it is set up.

      What if I miss an IVA payment?

      Missing your IVA payment can be very risky. You must keep your insolvency practitioner up to date with your current financial situation at all times. Late payments may be excused if you have a good enough reason to why you were unable to meet the deadline.

      Once you have missed 3 payments then your practitioner will send you a “Notice of Breach”. Normally, you will be allowed between one and three months to correct the problem explaining the missed payments and paying as soon as possible. Once you do this, your creditor will not frantically chase you down any more. However, they will still be able to arrange basic contact with you because, at the end of the day, you still owe them money.

      Talk to your practitioner as the terms of your arrangement may be changeable. However, your practitioner can also terminate your IVA or apply to the court to make you bankrupt.

      You should always speak to your IVA provider as they will try to help you if difficult situations like this arise.

      Is my house protected in an IVA?

      If you own your home, you will almost certainly be asked to get a valuation on your house in the last year of your IVA. If remortgaging the house would raise more than £5,000, you will be asked to remortgage it and any money raised will be put towards paying back your debts. You will not have to sell your home. If remortgaging would extend the mortgage beyond its existing term, or put you beyond the state retirement age when it ends, you will not be expected to remortgage the property.

      If you can’t remortgage your house for any reason (refusal by the bank, or complications with a jointly owned property, for example), you will have to pay your usual monthly payments under the terms of the IVA for an additional year.

      It is possible but unlikely that you will be able to keep your home out of the IVA and thus avoid remortgaging it. If your insolvency practitioner feels that you will be able to pay back enough of your debts without including your house in your IVA, they may propose that it be excluded from the IVA when negotiating with your creditors, but this rarely happens.

      An IVA is a preferred option by many homeowners as your asset is protected whereas the alternative of bankruptcy you would in most cases be asked to sell you home.

      If you rent your home, nothing will happen as long as you keep paying your rent but we would always advise for you to check your tenancy agreement before entering any agreement.