Individual Voluntary Arrangement (IVA) - FAQ

IVA

The most common questions people have when considering an Individual Voluntary Arrangement are answered below:

Q: How much can I afford to pay each month?

A: Complete the personal assessment for an analysis of your spending and an idea of how much you can afford.

Q: How does an IVA work?

A: The Government has issued a leaflet which set’s out how IVA’s work and the things you should consider before entering into an Arrangement. You can read it here.

Q: How much will I have to repay my creditors?

A: Everybody’s circumstances vary, but generally, creditors will expect the arrangement to provide a fair level of repayment, taking into account your circumstances. They will also require that they will receive more than if you were to be made bankrupt.

We have many years experience of constructing IVA’s and have a good relationship with financial institution which means that you can be confident that we prepare sound proposals that will generally be accepted by your creditors.

Q: Will an IVA settle all my unsecured debts?

A: Yes. Once approved by 75% in value of your creditors, an IVA legally binds all your creditors and is in full settlement of your debts.

Q: Will I be able to get credit again?

A: Yes. During the IVA you will agree not to take out any credit, but once it has ended successfully, you will be able to obtain credit again. The IVA will stay on your credit record for around a year after it’s completion, but your credit record is likely to be repaired quicker than if you were bankrupt.

Q: Will my home be safe?

A: You will not usually have to sell your property when you enter an Individual Voluntary Arrangement. If you do own your home, you need to take reasonable steps at the end of the five year period to make any equity available to your creditors (usually by re-mortgaging). This requirement is also true for bankruptcy, except that bankruptcy often means you do have to sell your home.

Q: Do I have to pay any costs?

A: When you are in an IVA all you are required to pay is the amount you can realistically afford, each month, for the period of the IVA (usually 60 months). That single monthly payment is all that you have to pay, provided as you keep up the payments. As part of the Individual Voluntary Agreement, your creditors agree to write off the debt that you can’t afford to repay. They will also pay our fee out of the payments that you have made to them.

Call us now to arrange a personal assessment of your financial situation on 0161 834 7025.

For more information about IVA please see:

IVA  •  IVA - Pros & Cons  •  Other Debt Solutions