IVA Help and Advice, Giving you a second chance.

An IVA is a realistic alternative to bankruptcy, which the government introduced as part of the Insolvency Act 1986, to give people a second chance. It's a legally binding structured repayment plan, which benefits both you and your creditors.

The IVA must be affordable and appropriate for your individual needs and will be carried out by a licensed Insolvency Practitioner who will sign your IVA proposal which will also need to be signed by yourself and your creditors. Once this has been done your proposal along with evidence of your debts will be presented to your creditors who are given a minimum of two weeks to review and respond to the proposal.

At least 75% of creditors must agree to accept your proposal for the Arrangement to be accepted. If you have any equity in your home whilst in your IVA you may be required to release this to repay your debt.

All the interest and charges on your accounts will be frozen. There will be just one affordable amount payable over an agreed term, usually 5 years. An IVA is only appropriate if you can commit to making regular payments.

The Process

1. Talk to an advisor
You will need to discuss your finances with one of our advisors who will talk you through the most appropriate solution for your circumstances. This will include who you owe, what assets you may have and your household income and expenditure.

2. An IVA has been decided as your best option
Your IVA proposal will be drawn up by your advisor. This will include how much you can afford to pay.

3. Meeting of Creditors
Your creditors will be invited by your Insolvency Practitioner to look at your proposal and to decide whether or not to accept it. 75% of your creditors by debt value must agree to your proposal for your IVA to be accepted.

4. IVA accepted
Your IVA is now legally binding and everyone involved in your IVA is bound by the terms of the agreement. If you break them your creditors may take legal action including bankruptcy. Now your IVA has been accepted you will start to make your monthly payment to your Insolvency Practitioner who will then distribute your payments to your creditors as agreed. All interest on your accounts will be frozen.

5. During your IVA
If you own a house and have equity, you may be required to release this during your IVA to help repay your debt.

6. Month 60 - Completion
As long as everything has gone according to plan you should now find yourself at the end of your IVA. After you have made your 60th payment any unsecured debt still outstanding will be written off and you will be debt free.

For more IVA help, information and advice, contact us online or call us now on 0800 473 0636