IVA (Individual Voluntary Arrangement)

Individual Voluntary ArrangementPart of your debt written off with an IVA

If you have debts over £12,000 yourself, or together with your partner, we can help you enter into an arrangement with your creditors whereby a large part of your debt is written off.  This is known as an Individual Voluntary Arrangement (IVA) and is covered by Government legislation.  You need to engage an Insolvency Practitioner to enter into an IVA and this is how we can help.  Once the IVA is in place your creditors will no longer be able to harass you for your debts and you will avoid bankruptcy.

To qualify for an Individual Voluntary Arrangement

For us to help you with an IVA you must have a minimum of £12,000 or more of unsecured debt - there is no upper limit.  Debts secured against your property or taken out on HP however cannot be included in an IVA.  You must owe money to two or more creditors and be a resident or have been resident within the last 3 years in England or Wales.  You can be a tenant or home owner, employed or self employed.  You must have a regular income or a sum of money available (this could be from a release of equity in your property or from a friend/ family member).  The sum of money can be significantly less than the total amount you owe.  Age is no barrier.

One monthly payment you can afford

How does an IVA work?  Let's look first at a Monthly Payment IVA

We will help you to calculate what you can afford to pay each month.  This sum is inevitably far less than what you are currently paying to meet your credit card and loan repayments.  You offer to pay this to your creditors for 60 months.  Each IVA is tailor-made for the individual or couple.  

The sum you pay each month may vary from year to year throughout the life of the IVA, since a review of what you can afford to pay is carried out every 12 months.  The monthly figure you pay is then adjusted either up or down accordingly.

After 60 months your creditors will then agree to write off the remaining debt and you will be free from debt - what could be better!  We believe an IVA is a fair deal for both you and your creditors.

What happens if you have a property?

If you own your property and have equity in it (i.e. if you sold it you would make a profit), you may be required to release some of this into your Monthly Payment IVA in addition to your monthly payments - this would normally be done towards the end of the IVA either by you re-mortgaging your property and releasing this equity or by making additional monthly payments beyond the 60 months to cover this amount.

A one-off payment offer

Let's look now at a One-off Payment IVA.  We will help you to calculate a sum of money that we believe would be acceptable to your creditors should you be able to offer it to them to clear your debts.  This figure would be significantly less than the amount you owe.  It could be as low as 10%.  You could raise this money either by releasing equity from your property or from a friend/family member.  Once the figure has been agreed by your creditors and paid into the IVA you will be free from debt.

Interest and charges frozen

In approving your IVA, the creditors will agree to freeze all interest and charges on your debts.

We do not charge you for our services

Our fees (those of the Insolvency Practitioner) are paid out of the sum you agree to pay to your creditors each month or the one-off payment and are not in addition to what you pay.  Unlike some IVA organisations, we do not charge any up front fees, and there are no hidden extras.

Call us free of charge on 0800 011 2435

If you would like to know more about setting up an IVA, call us free of charge on 0800 011 2435.

Or why not take the first step to becoming free from debt by applying for an IVA now.  Simply click on apply now and complete the form.  It will take less than one minute to complete.

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