How does an IVA work?
What are the effects of an IVA?
Do all my creditors have to agree to an IVA?
What fees are involved?
Will my credit rating be affected?
What if I change my mind?
What if I am unable to make my payments?
What happens at the end of the agreement?
Why would my creditors accept an IVA?
Does we belong to a professional body?
What about my house?

How does an IVA work?

An Individual Voluntary Arrangement (IVA) could be your best solution if you have a substantial amount of unsecured debt, usually over £15,000.

As a licensed Insolvency Practitioner we can negotiate a legally binding agreement between you and your creditors.

What are the effects of an IVA?

As long as you continue to pay the agreed amount each month you’ll be protected from any further action being taken against you by your creditors. Interest and charges will normally be frozen.

Do all my creditors have to agree to an IVA?

To approve your IVA, at least 75 per cent (by debt value) of the creditors who vote at a meeting, must accept your proposals. Even if they don’t vote, or they vote against your proposals, each of your creditors will be bound by the agreement as long as it has been accepted by this majority.

What fees are involved?

Depending on your situation, you may be advised to enter a specific debt solution. If you do, fees will be charged. As one of the longest-established debt solution providers in the UK we always strive to offer our customers an excellent service together with ensuring our fees remain competitive. Click here for more on our fees.

Will my credit rating be affected?

Yes - in an IVA your ability to obtain credit will be affected for 6 years.

What if I change my mind?

You are under no obligation whatsoever to enter a debt solution. If you do choose to enter a solution, and then change your mind about it, you have the right to cancel the agreement at any time within the first 14 days.

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What if I am unable to make my payments?

We will be in regular contact with you to make sure you’re able to meet your monthly payments - your IVA might fail if you fail to keep up with them, and you could even be made bankrupt. However, if you find that you are unable to meet your payments due to a change in your circumstances, we will try to renegotiate the terms of the agreement with your creditors, based on your new situation.

What happens at the end of the agreement?

As long as the terms of the proposals have been fully performed, the creditors who were included in the agreement will have no further claim against you and the balance of any unpaid unsecured debts is written off.

Why would my creditors accept an IVA?

In accepting an IVA, your creditors will expect to get a better return than they would from any other reasonable alternative, and your payment proposals should demonstrate this to be the case. Your creditors will also benefit from the fact that your IVA will be monitored.

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Does Debt Advisory Centre belong to a professional body?

Our insolvency practitioners are licensed by either the Insolvency Service (part of the Department of Trade and Industry) or the Institute of Chartered Accountants in England and Wales (ICAEW), and are members of the Association of Business Recovery Professionals (known as R3). All licensing and professional bodies provide technical, professional and ethical guidelines that have to be followed carefully.

More information is available from the Insolvency Service website at www.insolvency.gov.uk.

What about my house?

One of the main benefits of an IVA as a solution over bankruptcy is that the family home will not be repossessed. If you are a homeowner, there is a possibility you will be asked to release part of the equity in your home to pay towards the arrangement

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Call us on: 0800 970 7724