How can an IVA help me?
An Individual Voluntary Arrangement (IVA) is a formal arrangement between you and your creditors in which you pay an amount you can afford.
This can be a one-off premium IVA paid off by a lump sum or over a longer period of normally 60 months (5 Years) or potentially 72 months (6 Years) if you are a homeowner. You pay a fixed sum into the IVA which is affordable to you. We manage the creditors and distribute payments on a pro rata basis.
When you complete the IVA any remaining debt is legally written off. During the IVA creditors cannot apply any further interest or charges for the life time of the IVA. Creditors are also not allowed to take further action during the IVA.
If you were to miss payments into the IVA we would normally need to see evidence for the reason this has happened. Any missed payments would normally be added on at the end of your IVA.
|No set up costs or upfront fees.||Your credit rating will seriously affected by an IVA.|
|Once the IVA is completed you are completely debt free.||Once the IVA has been accepted it will be recorded on a public register.|
|Almost every debt can be included in an IVA. Except court or criminal fines.||You may be asked to pay a percentage of any over time or bonus in to the IVA.|
|Creditors cannot take further action against you or apply interest or charges on the debt through the life of an IVA.||If you are a homeowner then a re-mortgage may be required, if this is not possible then the IVA would be extended for a further 12 months.|
|An IVA was introduced to protect your assets such as a house or a car providing mortgage payments and hire purchase agreements are maintained.||You may be asked to pay a percentage of any over time or bonus into the IVA.|
|An IVA is an alternative to bankruptcy.||Court fines, criminal conviction fines cannot be included in an IVA.|
|In most cases council tax can be included in the IVA.||Any Windfalls from lottery wins or inheritance may have to be paid into the IVA.|
|One monthly affordable Payment.|
An IVA is supervised by an insolvency Practitioner (IP) who will put together a payment proposal, once you are happy with the terms set out in the IVA proposal the creditors will then receive a copy of this.
Free Debt Advice UK has our own licensed insolvency practitioners called Barrington Shepherd Ltd who has over 20 years’ experience in regards to personnel Insolvency.
There are two main fees in regards to an IVA. The first fee is called the nominee fee. The nominee fee is used to cover the costs of setting the IVA up.
The Second fee is called the supervisory Fee. The Supervisory fee is for the administration of your IVA and distribution of payments to creditors over the term of the arrangement.
At Barrington Shepherd our IVA fees are industry standard, in the proposal our fees are fully outlined and are agreed with the creditors at the start of your IVA.
The fees in an IVA have no impact on your payment amount or the time scale you pay the debt back in. The Fees are taken to the detriment of the creditor. The fees in an IVA cannot be negotiated.
There are no set up fees to be paid to set your IVA up. There are some companies that do charge a setup fees.
You can only apply for an IVA if you’re a resident in England Wales and Northern Ireland.
If you live in Scotland please click on debt help Scotland for more information on which solutions are available for you.
Our success rate with IVAs is Very high, 97% of proposal we put forward are accepted by the creditors.
With the amount of experience gathered over the years Barrington Shepherd Ltd Knows which creditor accept IVAs and which creditors reject IVAs.
IF your IVA is rejected then we can look at other solutions for you such as a Debt management Plan (DMP) we can provide a tool kit to do this yourself or point you to the free sector.
We never recommend paying fees for a DMP as this may result in you being in debt for longer.