What is an IVA?

There are an increasing amount of people who are going through hard time with debt payments in the UK.

Many of these people are seeking help in the form of an IVA.  IVA applications are on the increase as many face insurmountable debt. To apply for an IVA you usually need to contact a company that specialises in debt.  There are many of these companies on the Internet.  With your help, this company will draft a proposal which will outline how much you owe, your earnings, and the amount which you can pay over the next 5 years.

The proposal must be approved by the creditors who own at least 75% of the total outstanding debt. Should the creditors agree, part of your debt will be written off and the interest will be frozen.

There are usually no upfront charges for IVA consultations.  Getting advice from an IVA expert can benefit you in making the right decision regarding your debt.

Who can apply for an IVA?

An IVA is available to all Individuals, who are experiencing financial difficulties on their unsecured debt. To apply for an IVA you should have a stable income and surplus cash each month after paying for your basic living costs. To make an IVA work for you you should have at least £15,000 of unsecured debt and more than 3 creditors.

Is an IVA free?

Most debt management companies do not charge up front fees for IVA’s. Fees can vary according to the overall level of debt and are built into the monthly payments. A full detailed schedule showing the level of fees to be charged in an IVA is included within the IVA proposal for you and your creditors to see.  Do not go with any companies that charge upfront fees for taking out an IVA.

How long does an IVA last?

An IVA usually lasts for 60 months and will continue as long as regular payments are being made.

Which debts can be included in an IVA?

* Outstanding Inland Revenue debts
* Loans from friends
* Credit and store cards
* Bank accounts
* Finance company loans
* Outstanding VAT

Can I arrange an IVA directly with my creditors?

To apply for an IVA you will need the services of a licensed Insolvency Practitioner who will supervise and review your IVA throughout the Arrangement.

Related posts: