Is an IVA the right solution for me?
To enter an IVA you should have at least 'unsecured debts' of £15,000 and more than 2 creditors. A mortgage, second charge loan or car hire purchase agreement are secured debts so you can not use an IVA to pay off secured debts or tangible objects that can be repossessed. But there are ways that you could re-mortgage a house or refinance a car.
How much of my debts will be written off?
Nowadays it is becoming more difficult to get lenders to agree to write off more than 55-66% of debts with an IVA, no matter what other debt management companies say in their advertising literature. It may be possible to write off up to seventy five percent, but this is becoming rare.
Is an IVA a one size that fits all?
No, an IVA can be set up on the basis of offering a lump sum payment to creditors as opposed to making monthly payments. Some IVA's can be a mixture of the two depending on your circumstances, a lump sum and monthly payments.
What if I own my own home?
You are likely to be required to release the equity in your home, if there is any there, usually in the last year of the IVA
What if I have CCJs against me?
Entering an IVA will avoid further recovery action after a creditor has obtained a CCJ against
you. CCJs can be incorporated into the IVA.
Do creditors have to accept an IVA?
Once you have decided that an IVA is the right option for you a draft proposal will drawn up by a specialist insolvency practitioner for your creditors. He will invite them all to a creditors meeting arranged by him. At this meeting he will negotiate on your behalf with the creditors
What happens at the creditors meeting?
Once the negotiations are over the insolvency practitioner will put it to a vote. If 75% of your creditors, by debt value who vote agree to the IVA, then the rest are bound by the IVA, even if they voted against it. Sometimes creditors will argue about the terms of the IVA. Some may ask that you make payments over a longer period, or, ask that your assets are used to raise cash to pay for the IVA - this may mean selling or re-mortgaging your home, or selling your car, or any other asset you may have that can be sold to raise cash.
If I enter an IVA what happens next?
Once the IVA is agreed the insolvency practitioner will supervise the IVA and make sure you make the payments. An IVA can help you avoid bankruptcy, as long as you stick to the payments that have been agreed. It is important that we know the true extent of your debts. Being completely honest with your advisers is the only way they can do their best for you.
How long does it take to set up an IVA?
It will take us about six weeks to set an IVA up for you.
What if a creditor takes further recovery action before the IVA has been approved?
You can apply to the courts for an Interim Order to stop any of your creditors taking further action until the outcome of your creditors meeting becomes known.
A fee is only payable where further services are requested. All fees will be explained in detail and discussed prior to commencement of any service or debt repayment plan. In the IVA our fees are included in your monthly payment to your creditors so you will not have to pay anymore than you can afford. More suitable debt solutions may be offered which may result in different fees applying and we will discuss those with you during your initial consultation. Read further information. Creditors may still contact you with promotional material or to fulfil contractual obligations to you but they should deal with us in all aspects relating to the outstanding debts.
Acceptance of your IVA cannot be guaranteed but we will do our best. You must meet certain criteria which will be discussed with National Debt Relief advisors. Where we put a client forward for an IVA we believe they have an excellent chance of being accepted. Debts will only be written off where a client has made an agreed payment for a fixed period. In return the creditors agree to write off the remaining balance. Typically, our clients average debt write off is between 60-70% of the debt. What debt you have written off will depend on your individual circumstances and is subject to creditor approval and completion of the IVA. Your credit rating may be impacted for up to six years from the commencement of you IVA. Homeowners may be required to introduce equity if available.
Phonecalls: Calls from a landline are normally free. Please consult your provider if you are unsure. Calls from a mobile may be subject to charges. If you get charged just ask us to call you back for free.