IVA Advice (Individual Voluntary Arrangement)

Individual Voluntary Arrangement

What is an IVA?

Where do you apply?

How does an IVA work?

How much does an IVA cost?

Will an IVA affect my credit rating?

There are countless questions which people considering an IVA will have. Don’t worry though, we’re on hand to give you all the detail you need to make an informed decision as well as point you in the right direction with reputable and trusted companies.

Our guide explains what an IVA is and how they work. You can find out the positives and negatives of IVA’s as well as the process involved and what happens during an IVA. If you’re being contacted by debt collection agencies, like Moorcroft Debt Recovery, Lowell FinancialPRA Group and others an IVA may be a good option for you.

It’s designed to provide you with a firm understanding of whether an IVA is a right option for you. We will also talk you through the steps need to get an IVA.

All you need to know about Individual Voluntary Arrangements

  • What is an IVA
  • Will creditors have to agree to an IVA?
  • Is an IVA the right option for me?
  • How to set up an IVA

What is an IVA plan?

IVA stands for Individual Voluntary Arrangement and is an alternative to bankruptcy. It is a contract which is formed between you and creditors that you are in arrears with.

It’s based on what you can afford and is designed to allow you to pay an agreed amount on a monthly or weekly basis.

When opting for an IVA, you agree to pay a certain amount for a fixed period of time, most commonly over a five-year stint.

When you complete this, under the terms of the contract, the remainder of your unsecured debt is legally written off by your creditors.

So at the end of the five year period, you will be debt free.

You can download the entire Government guide to Individual voluntary arrangement (IVA) protocol here. 

Will my creditors agree to my IVA?

After a proposal has been written, creditors will consider the IVA and decide whether to accept it or not. They will understand that because you are going through official channels, you are offering to pay as much as you are able to afford.

The IVA proposal will also include a comparison to Bankruptcy and outlines that they would receive less through bankruptcy in comparison to an IVA. You are offering as much as you can afford and it has been verified by a trusted Insolvency Practitioner. More often than not, they will accept your IVA proposal.

Is an IVA the right option for me?

There are a number of reasons that an IVA might be the right option for you, including:

  • You have more than £5,000 worth of debt
  • You have 2 or more creditors
  • You are employed
  • You can’t afford your debts but can afford £80 a month
  • You want to stop debt collectors contacting you
  • Creditors are threatening Court action

Get in touch with our trusted and recommended experts if you’re interested in knowing more.

How to set up an IVA

Setting up an IVA is a fairly straightforward process once you’ve taken the brave first step.

Step 1: Simply head over to National-Debt-Helpline.org.uk and complete their contact form. From there a Debt Adviser will get in touch with you and talk you through the process.

Step 2: If they establish that an IVA is the best option for you, and you agree, then they will help prepare your IVA proposal. 

Step 3:  After you are happy with all of the information that you have been given and the pros and cons of an IVA an Insolvency Practitioner will deal with your creditors on your behalf.

Once your IVA has been approved, you will have just one affordable monthly payment. There will be no more interest added to your debts, they will be frozen by law and you will not be contacted by debt collection agencies anymore. Find out more today.