This website contains the basic IVA details that you may need to know before you choose what debt solution if right for you. Please see our IVA FAQs section or contact one of our IVA advisors directly for IVA information – 0800 0481 777.

What is an IVA?

IVA is short for Individual Voluntary Arrangement, and was introduced as part of the Insolvency Act of 1986. An IVA is a legally binding agreement between the debtor and their unsecured creditors. In an IVA, the debtor agrees to pay one reduced monthly sum for a typical 60 month period.

As part of the agreement, any unaffordable debt will be written off at the end of the IVA agreement. Once an IVA has been completed, the debtor will be free of any unsecured debt.

Can I Apply for an IVA?

An IVA is not suitable for everyone, and it is important that you seek professional advice to see if you qualify.

Speak with one of our IVA advisors on 0800 0481 777, they will go through your personal circumstances and help you to find a solution to your debt problems, whether this be through an IVA or a debts management plan.

An IVA is a part of Government legislation and is not something that you can do yourself. This means that the costs of setting up an IVA are rather expensive. Therefore you need to have debts of at least £12,000 to be considered and be able to afford monthly payments of at least £200.

Can all my Debts be included in an IVA?

You can only use an IVA for unsecured debts, such as credit cards, unsecured loans, store cards and bank overdrafts.

An IVA will not cover any debts which are secured against an asset, such as mortgage, remortgage or secured loan. There are other debts which can also not be included such as certain student loans or debts which arose from fraud.

To see if your debt can be included in an IVA, speak with our advisors on 0800 0481 777.

Will I lose my home if I agree to an IVA?

One of the greatest advantages of an IVA is that you can protect your assets. This means that you should not have to sell your home, unlike bankruptcy where your home and assets will be split between your creditors.

You may be asked to release some of the equity in your home to pay back your creditors.

Will my Creditors agree to an IVA?

For the IVA to be agreed, 75% of your creditors (in terms of debt value) must approve it. This overall IVA process typically takes 4-6 weeks as it is very complex. However, you won’t have to worry about a thing as we will complete the IVA proposal on your behalf. We will ask for your co-operation in giving us further details of your personal and financial circumstances and signing any paperwork.

Once the IVA has been agreed by the majority of your unsecured creditors, none of them are allowed to take any further action against you and your debts as long as you make the agreed monthly IVA payments. They will not be allowed to contact you.

Can I finish my IVA early?

In most cases, IVAs run for the full 60 month period, but if your personal circumstances change then you may be able to finish the IVA early.

You must contact your Insolvency Practitioner (IP) if your financial circumstances change over the IVA term, such as if you receive a windfall or inheritance. Your IP will approach your creditors and try to negotiate a settlement. However, the process for this is dependant on your personal circumstances.

For further information about how an IVA could help you with your debt problems and to see if you are eligible for an IVA, call the Debts Management team on 0800 0481 777.

If you are looking for a way to manage your debts, a Secured Debt Consolidation Loan could help.

A Debt Consolidation Loan can reduce your monthly payments to your unsecured debt by consolidating your existing unsecured debt and replace it with a secured loan. This should reduce the amount that you have to pay out to your debts, and having one lower monthly payment may make your finances much easier to control.

Still considering your options? Fill out the Quick enquiry Form now for a free callback and to  see what debt solutions are available for you.

Alternative Ways to Manage Your Debts

A Debt consolidation Loan is really only best suited to those who have equity in their property and feel confident that they can meet the payment commitment of the new loan. If you feel as though a Debt Consolidation Loan is not the answer to your debts problems, Debts Management can still help find a debt solution for you.

We can offer you advice on how to manage your debts with the help of a Debt Management Plan or IVA. Both of these should reduce your monthly payments to unsecured creditors which should give you greater control over your finances.

An IVA can come with many additional benefits; it offers a certain amount of debt write off so you only pay back what you can afford. It is a fixed payment plan so you pay monthly payments over an average period of 60 months, and then you can be debt free after your IVA has been completed.

No matter what your debt problems, Debts Management have helped people in a similar situation to you, and our experience means that we will be able to find a debt solution to suit your needs.

For advice and information about help to manage your debt through consolidation, call us free on 0800 0481 777.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERM OF DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

For mortgages and re-mortgages the overall cost for comparison is 5.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.

If the question you want answered does not appear please do not hesitate to benefit from our free debt help, so that we can answer any questions you may have about IVAs.

Alternatively, please feel free to comment below with your IVA  question and we will try to add it to our list of FAQs.

FAQ – IVA

IVA FAQ – Please click the link for a list of the most commonly asked IVA questions.

Debt Management FAQ – If you want specific Debt Management Plan help, we have a section for that too! Please click the link for further information.

Here are some ways you could pay debts off…

1: Pay off more than the minimum about of debts owed.
One of the fastest ways which you can begin to repay debts is to pay off more than the minimum amount of debt.

Only making the minimum payment to your debts (which could be between 2-3%) will only prolong the amount of time you will be repaying the debts and the credit card provider can reap the rewards of interest.

Pay as much as you can each month. This might mean setting yourself a stricter monthly budget, but try and throw any spare cash you have available at your debts. Ways to pay debts that little bit quicker could include bringing your own lunch to work instead of eating out or avoiding the temptation to ‘treat yourself’ to unnecessary items.

2: Know that there are debt solutions available.
Knowing that there are debt solutions designed to help you pay debts is a piece of invaluable knowledge, as believe that they will forever have to struggle to pay debts off or file bankruptcy. This is no longer the case as there are a number of debt solutions which can help you pay debts off:

Debts Management Plan – An informal agreement between you and your unsecured lenders. A Debts Management Company, such as ourselves, will negotiate with your creditors so you can make smaller monthly payments to your debts. Although it will take you longer to pay debts off, you should find that they are no longer a struggle on a monthly basis.

IVA – Like a Debt Management Plan, you can benefit from making smaller monthly payments to your creditors, but with additional advantages. An IVA allows you to make reduced monthly payments and at the end of the IVA, typically 60 months, you will be free from unsecured debt.

The simplest way to discover alternative ways to paying debts, is to get expert debts management advice. Our debts advisors are on hand to offer you further information about the range of ways you can pay debts off. Call today on 0800 0481 777.

• Type of Agreement.
  An IVA is a legally binding agreement between the debtor and the creditor. Once an IVA has been approved then the creditor cannot change their mind and pull out of the plan.
  Whereas a debt management plan is an informal agreement and creditors do not have to accept your offer.
• Debt written off?
  Only an IVA can write debt off, and it is not possible to do so with a debts management plan.
• Amount of debt.
  An IVA can only be arranged if you have over £15,000 worth of debt. If you have less than this amount it is likely that you will only get accepted for a debt management plan
• Flexibility.
  A debt management plan is the most flexible of the two, and your payments can be changed in accordance to your personal circumstances. But an IVA is a legally binding process and you must commit to making that payment level each month.

Terms & Conditions Apply. An IVA is for unsecured debts only, and should only be considered in extreme circumstances as failure to adhere to the IVA agreement could result in bankruptcy. Debt write off only applies when the IVA is agreed by your creditors and you have completed the, typically, 60 month term. Once your IVA commences, your monthly contribution is fixed and there are no additional fees on top. Our fees, paid by your creditors, are taken out of your monthly contributions to your IVA and will be notified to you in advance. Some homeowners may be required to remortgage.

Both of these debt solutions mean you make one affordable monthly payment which is tailored to your circumstances. The best way to discover which one is best for you is to speak to our expert Debt Management advisors on 0800 0481 777.

Debts Management or IVA?

The above are only a few of the common questions that we get asked, if you want more information then you need to take advice from our expert advisors. Call us free on 0800 0481 777.

Terms and Conditions apply. Debt Management Plans are for unsecured debts only, and the main benefit of this plan is the capability to only repay an affordable monthly amount, meaning it will take longer to repay your debts. You will receive allowances to pay Secured/Priority debts. Whilst you pay our initial fee, monies are not distributed to your creditors. Where contractual payments are missed your debt and repayment term could increase.