Process of An IVA
Complete A Review
A debt advisor (FCA Authorised) to identify which solution is available to you, This will include completing an income and expenditure to understand realistically what you can afford
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
Request A Decision from Creditors
Your creditors will either accept or reject your IVA proposal, They all do not need to vote for your IVA to be accepted but our team will negotiate with your creditors to get your IVA accepted. We have a current suceess rate of 97%
Once your IVA has been accepted by your creditors it is a legal binding agreement on all of your unsecured creditors, they can no longer contact you regarding the debt which is in an IVA
As long as you follow the terms of the IVA agreement, at the end of an IVA any remaining unsecured debt will be written off.
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
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?
- Based on the details you provided, IVA calculator will determine whether you qualify for IVA or not.
- It will also calculate the amount of debt you can write off with an Individual Voluntary Arrangement - IVA.
- Our IVA calculator will send your results to your dedicated adviser.
- We do not charge any setup fees.
Basic criteria to qualify for IVA
- Your total unsecured debts are £5,000 or more.
- You have 2 or more creditors.
- After all your necessary expenses are covered, you have a monthly surplus income of minimum £70.