An IVA normally lasts for 60 months. But there are times when it is possible to complete an IVA in a shorter time, if applicable you should discuss it with your Insolvency Practitioner.
An IVA is a legally binding contract between you and your creditors, and to see if you qualify for an IVA, you need to seek expert advice. Telephone Debts Management on 0808 131 9112 for more information.
Here are the basic IVA criteria as used by Debts Management:
When you have completed your IVA, you will receive a "Statement of Completion", normally within three months of the final payment. The Insolvency Service will also receive a copy of this for their records.
75% of your creditors, in terms of debt value, must agree to your IVA proposal in order for it to be accepted. Even if the other 25% reject your proposal, it will still be legally binding to them.
If you feel as though you may miss IVA payments or that they are not affordable to you, you need to get in touch with your Insolvency Practitioner straight away. Failure to make payments on time can lead to bankruptcy proceedings.
An IVA is a legally procedure, and before you can enter into an IVA your creditors must accept your proposal. Your proposal will be based on how much you can afford to pay your creditors after all living expenses have been deducted, in return they will clear off your unaffordable debt at the end of this period.
When your IVA goes through, you will have to give up your current credit which means that you cannot have any credit cards, store cards or personal loans. You will also not be allowed to take out any further credit during your IVA term.
The IVA proposal will be through your Insolvency Practitioner, they will prepare your proposal and hold a meeting with creditors. When your creditors vote in favour of the IVA it will become legally binding to them and to you. After this has happened, all you need to do is make sure that you continue to make the monthly payments.
An IVA can only include your unsecured debts, which includes credit cards, store cards and personal loans. Other debts cannot be included in your IVA proposal so it is important that you keep up to date with these. Examples of debts which cannot be included in your IVA include your mortgage, car hire purchase and student loan company debts.
The amount that you will need to pay your creditors is based on your individual circumstances. During the IVA proposal your Insolvency Practitioner will go through your finances and help you to decide an amount that you can afford to repay. Your creditors choose to accept or reject your proposal during the Meeting of Creditors.