IVA Process

An IVA (Individual Voluntary Arrangement) was introduced as part of The Insolvency Act 1986 to help debtors come to an arrangement to pay debts over a set period of time as an alternative to bankruptcy.

An IVA is a legally binding agreement made between a debtor and his/her creditors, due to the legality and regulations imposed on Insolvency Practitioners there is a set process each IVA application must follow:

Complete A Review and Budget

You will initially complete a review with a debt advisor (FCA Authorised) to identify an IVA is the right solution for you, this will include completing an income and expenditure to understand really what you can afford

The Income and Expenditure Budget will be based on the money you have left after living costs have been taken into consideration. This includes your household bills such as Rent/Mortgage, Food, Gas and Electric.

The proposed payment in your IVA is designed to help still live a comfortable life while repayments are made to your debts, each year your income and expenditure will be reviewed to ensure any payments are still manageable

Prepare Your Proposal

We will prepare and issue a proposal to your creditors to demonstrate to them how much you can afford to pay towards your debts

Before this proposal is sent to your creditors your Insolvency Practitioner will ask you to gather information, they will need to prepare your proposal, this is the basic information requested to help determine any advice given by way of an IVA (Individual Voluntary Arrangement) is the correct option for you

Typical information/paperwork needed:

  • Payslips
  • Bank Statements
  • Proof of Benefits
  • Photo ID
  • Proof of Address
  • Proof of Rent / Mortgage
  • Proof of Debts / Credit Report
  • Proof of Vehicle Finance
  • Proof of Childcare / Nursery Costs / Child Maintenance
  • Tax Return (Self Employed) – If No Tax Return Cashflow Forecast

Note your qualified debt advisor can help you gather this information and many insolvency practitioners do not require all the information listed above.

Once your IP (Insolvency Practitioner) has this information they will prepare your proposal to be submitted to you for your perusal to make sure the information in your proposal is accurate as this is a legal document which will be sent to your creditors, this process is where the insolvency practitioner gives your creditors notice for your MOC (Meeting of Creditors) normally 14 days.

You will be expected to sign and date your proposal before it is issued to your creditors, generally this is done by e-signature but can also be done via post.

Meeting of Creditors (MOC)

Once your Insolvency Practitioner has submitted your proposal then it is a case of waiting for a meeting date, this is the date the creditors normally agree or reject your IVA proposal

At least 75% in value of the creditors who vote on your IVA must vote in favour in order for it to be approved, IVA Debt UK has a current approval rate of 97% of all proposed IVAs being accepted

There may be a situation where your creditors reject your IVA, in this instance, we will negotiate with your creditors to get your IVA approved. Creditors can reject IVAs for many reasons from asking your Insolvency Practitioner to reduce there fee’s to asking you to contribute more to your IVA or extending the term of your IVA to 6 or 7 years, Any changes are negotiated with you and your creditors to essentially help mediate a realistic outcome for all involved.

IVA Calculator

Roughly how much unsecured debts do you currently have?

Less Than £6,000
£6,000 - £10,000
£10,000 - £20,000
More Than £20,000

What is your current employment status?

Full-time employment
Part-time employment
Looking for work
Unemployment
Benefits

What country do you live in?

England
Scotland
Wales
Northern Ireland

1
Good news, we can help write off unaffordable debt

Based on your debt of £6,000 - £10,000, we have identified that we can help you become Debt Free.

One of these options may be able to write-off up to 85% of your debt.

What happens now?
Fill out the form and continue online to see how much debt you can write off.
Confirm debt write off percentage.

2
Let's get started

We have identified we could help save you thousands on the debt you owe.

To access your RESULTS, please complete the form below to find out if you qualify to write off up to 85% of your debt and potentially reduce repayments to just £20 per week.







Who Can Get 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:

Have £5,000 or More of unsecured debt

Owe money to two or more creditors 

Live in England, Wales or Northern Ireland

Maintain a payment of a minimum of £70 per month 

You can see if you qualify for an IVA and whether you can write off up to 90% of unsecured debt

 

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 right off up to 90% of your debts and is also an alternative to bankruptcy. 

In an IVA a single payment is agreed with your financial situation taken into consideration, The payment is then divided between the unsecured creditors over a set period of time (usually five years), after which any remaining debts are written off. 

Once you enter into an IVA (individual voluntary arrangement) your creditors are legally bound by the terms and conditions imposed by an IVA, These include stopping to take any further action or contacting you directly.

Whilst there are no legal maximum or minimum amounts you must owe to get an IVA, Usually, 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.

At the end of your IVA, Any debt remaining will be written off and you will become debt-free.

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

Debts That 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 - Here are a few examples: 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

Debts Cannot be Included In An IVA

Mortgages are protected (shortfalls can be included as unsecured debt)

Other secured loans

Hire purchase agreements (shortfalls can be included)

Debts incurred through fraud

Court fines (some can be included)

TV license arrears

Student loans (some can be included)

Child support arrears

How Does IVA Calculator work?

  1. Based on the details you provided, IVA calculator will determine whether you qualify for IVA or not.
  2. It will also calculate the amount of debt you can write off with an Individual Voluntary Arrangement - IVA.
  3. Our IVA calculator will send your results to your dedicated adviser.
  4. We do not charge any setup fees.

Basic criteria to qualify for IVA

  1. Your total unsecured debts are £5,000 or more.
  2. You have 2 or more creditors.
  3. After all your necessary expenses are covered, you have a monthly surplus income of minimum £70.

IVA Calculator

Roughly how much unsecured debts do you currently have?

Less Than £6,000
£6,000 - £10,000
£10,000 - £20,000
More Than £20,000

What is your current employment status?

Full-time employment
Part-time employment
Looking for work
Unemployment
Benefits

What country do you live in?

England
Scotland
Wales
Northern Ireland

1
Good news, we can help write off unaffordable debt

Based on your debt of £6,000 - £10,000, we have identified that we can help you become Debt Free.

One of these options may be able to write-off up to 85% of your debt.

What happens now?
Fill out the form and continue online to see how much debt you can write off.
Confirm debt write off percentage.

2
Let's get started

We have identified we could help save you thousands on the debt you owe.

To access your RESULTS, please complete the form below to find out if you qualify to write off up to 85% of your debt and potentially reduce repayments to just £20 per week.







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