An IVA ( Individual Voluntary Arrangement ) is a government solution created to help people clear their debts instead of going bankrupt. With an IVA you only pay back what you can afford to pay each month.Because an IVA is legally binding, your creditors cannot alter the terms of the agreement at any stage.
The duration and payments of an IVA are fixed. In most cases a large portion of your debts are legally written off . This means you could only pay back a small percentage of your debts. You will know exactly when you will be debt free.
An IVA is the right choice for you if you:
An IVA may be right for you and you could have a large portion of your debts legally written off.
An IVA is structured so that your creditors agree how much fees are charged for setting up and supervising your IVA agreement. This fee is taken from the overall amount that you pay into the arrangement so you will never pay any more than your monthly payment.
For Example: If your monthly payment is £220 and the duration of your IVA lasts 60 months, you will only ever pay £13,200 (220 x 60). Any remaining debts will be written off. Since the fees are decided and settled by your creditors, you only need to worry about choosing the right IVA provider who will give you the service you require
NOTE: In an IVA you will have an agreed budget for your living costs. There are allowances for this in the agreement. These expenses will be mostly based in what you currently have to pay out each month. You should declare all normal monthly expenses to your creditors so they understand your situation more clearly. There may be some restriction on some expenditure items, such as mobile phone for example.
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.