IVA
Individual Voluntary Arrangement
All the adverts and media publication make IVA’S a tempting solution to resolve your debt and be debt free in 5 years normally. However, this is a very detailed process and can take a long time to set up and in the meantime your creditors can take further action and ultimately reject an IVA proposal.
Key points
- You need to have 3 creditors or more and unsecured debts of at least £15,000 to qualify.
- Fee’s for an IVA are very expensive and may be required to be paid up front.
- 75% of your creditors need to agree to the proposal.
- Like bankruptcy – IVA’S are a public matter and therefore future application for credit may be affected.
- Credit rating will be affected for 6 years not the term of your IVA proposal.
- If you fail to meet your terms of your proposal for e.g. miss a payment then it is highly likely that the creditors will make you bankrupt at that point.
- You are closely supervised for any changes in your financial circumstances and you will need to report back to your IVA supervisor.
- Assets e.g. your home is at risk if your creditors do not exclude them.
- A court order will stop any legal action from your creditors.
- Telephone calls and letters will stop.
This debt solution may not be the best option available to you – we will talk through your individual circumstances and tailor a plan that meets your needs, maybe a debt management plan may be that alternative. Talk to one of our debt management specialists today and ease your financial worries.
