Beware! We've heard of so-called "debt management companies" who say that they are Insolvency practitioners and can set-up an IVA for you - but this is not true.
Under the Insolvency Act 1986, only authorised individuals may act as Insolvency practitioners. Insolvency practitioners are authorised on the basis of education, practical training and experience. They are subject to monitoring and regulation and must hold a security bond against losses caused by their fraud or dishonesty.
You will be pleased to know that Simple Debt Solutions are licensed Insolvency practitioners.
At Simple Debt Solutions, our experienced, ethical debt advisors will help deal with all your debt queries and will give you clear, jargon-free and impartial advice to help you decide which course of action is the best for you. We’re open 9.00am until 9.00pm 7 days a week or you can fill-in our online confidential form and we’ll get back to you.
1. Don't ignore the problem It won't go away and the longer you leave it, the worse it becomes.
2. Be wary of borrowing more money Don't borrow more money to pay off your existing debts with out getting professional advice first (Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959).
3. Don't turn your unsecured loans into a mortgage without getting debt advice first.
4. Do not pay anyone for debt advice.
Being in debt isn't something you should feel ashamed about. It can (and does) happen to everyone. In our experience (and we have plenty) most people who get into debt difficulties are just like you and me. They're normal people doing normal jobs who, as a result of unforeseen circumstances (divorce, mortgage rate rises, unemployment, illness etc) find that their finances run away from them and sooner or later, they need sensible advice and an ethical debt solution. That's where we step in to help.
Remember you are not alone with your debt problem. Our friends at Credit Action regularly put together UK debt statistics and we thought it may be helpful to share them with you.
Want to find out more about The Facts?
If you've got debts of over £15,000.00, there is a little known government solution that may be able to help. Called an IVA (Individual Voluntary Arrangement), this government backed scheme could be the solution to your debt problems. To find out whether an IVA is right for you please give our professional debt advisors a call now on 0800 389 5959. They will listen to your individual debt situation and will assess whether an IVA is suitable. You can rest assured that all our advice is impartial and free.
If you've got debts of over £15,000.00, there is a little known government solution that may be able to help. Called an IVA (Individual Voluntary Arrangement), this government backed scheme could be the solution to your debt problems. To find out whether an IVA is right for you please give our professional debt advisors a call now on 0800 389 5959. They will listen to your individual debt situation and will assess whether an IVA is suitable. You can rest assured that all our advice is impartial and free.
IVA stands for “Individual Voluntary Arrangement”. It’s a legally binding agreement between you and your creditors (the companies you owe money to).
It allows you to make an agreement to settle your debt within a reasonable and fixed period of time (usually about 60 months). Once you start an IVA, any interest or debt charges are frozen and the companies you owe money to will be stopped from demanding any additional payments.
With an IVA you agree to pay only what you can afford - typically one affordable monthly payment. Once you’ve made the final payment, any outstanding debt is legally written off but the affect on your credit rating could last for up to 6 years.
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Why should I choose Simple Debt Solutions?We are licensed Insolvency practitioners – unlike many debt management companies who are not.
To set-up an IVA, you must use the services of a licensed Insolvency practitioner. Simple Debt Solutions has a number of licensed Insolvency practitioners and our highly trained staff are all on-site and on hand to offer up-to-the-minute debt advice to all our customers.
We’ve been really disappointed to see an influx so-called “IVA advisors” onto the internet over the past few months. These companies not only seem to flout the law, but employ staff with little or no training in debt management. We regularly receive calls and emails from people who have been badly advised by these companies and who then turn to Simple Debt Solutions to offer true impartial debt advice.
How does an IVA work?One of our friendly, trained debt advisors will assess your financial position and, if an IVA is the best option for you, they will work with you throughout the process.
Step 1 – You nominate one of our experienced licensed Insolvency practitioners to work on your behalf (by simply instructing us to act).
Step 2 – We will assist you to create an IVA proposal that can be presented to your creditors.
Step 3 – When you are happy with the IVA proposal, we’ll send a copy to each creditor who will then vote to either accept or reject the IVA proposal. If the majority (at least 75% of those who bother) vote in favour, then all creditors are legally bound to accept (even those who rejected it!).
Step 4 – Once your IVA is accepted, all letters and phone calls from your creditors will stop. We will deal with all your creditors – all you need to do is pay the agreed monthly amount.
Step 5 – Once your IVA has been concluded, you won’t owe any money to anyone but your credit rating may be affected for up to 6 years.
Advantages of an IVA
1) There's no stigma or publicity unlike in bankruptcy.
2) You are always in control as the IVA is your proposal and (with our help) it is your choice which of your assets are included.
3) You'll always know where you stand and can be confident that you are taking a positive step to deal with your debts.
4) Your creditors will get a greater return as IVA costs are lower than in bankruptcy.
5) You can continue to be a company director (unlike in bankruptcy).
6) An IVA does not affect professions such as the Police or Armed Forces.
7) If job security is a concern, an IVA is private and your employer has no need to know about it.
Disadvantages of an IVA
1) Usually only suitable if you've got unsecured debts of at least £15,000.
2) All your assets and liabilities must be disclosed.
3) Any windfalls (including inheritance) must be declared.
4) On occasion, some equity in your property may need to be released.
5) You credit rating can be impaired for up to six years.
Some frequently asked questions about IVA's
Will my creditors agree to an IVA?
Most creditors - particularly banks, credit card and loan companies and other financial institutions are fully aware of the IVA process. If 75% of your creditors by value vote in favour of your IVA, then all creditors are bound by its terms. Creditors can suggest modifications to your proposal and you can choose whether to accept them or not. If your creditors vote against your proposal you have the option of an informal arrangement or bankruptcy. Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
What will an IVA cost me?
Typically you will simply agree to pay one affordable monthly amount, which will be held in an account. A payment will be made to your creditors when costs (which will be agreed by your creditors) are deducted. At the end of your proposal, if you have paid all of your instalments and, if appropriate, realised any equity in your property, you will have fulfilled your obligations and be completely debt free. Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
What do I have to do?
You will need to instruct us and we will then prepare all of the necessary documentation for your approval. We will then contact creditors on your behalf and will continue to deal with them on your behalf throughout your arrangement. We will call a creditors meeting so that creditors can consider your proposal. You will not usually have to attend a meeting and typically most creditors do not attend in person and vote by proxy (postal vote). You can attend if you wish, although a person from Simple Debt Solutions will Chair the meeting. Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
I am self-employed. Can I do an IVA?
Yes. In fact, being self-employed can be an advantage. Creditors can look favourably on an IVA if they are confident of the survival of your business where they otherwise look to call upon your personal assets. An IVA also enables your business to continue trading - something that would probably be impossible in a bankruptcy situation. Need more detailed IVA information? Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
Can I do a joint IVA together with my partner?
Yes. If you and your partner have debts that you are finding unmanageable, we draw up an IVA for you both and interlock them. All your debts would simply be pooled together and you would both have joint responsibility to meet your IVA payments. Need more detailed IVA information? Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
More information on IVA's and equity release
A major benefit of an IVA is that your home is always protected. However, if you do have a large amount of equity in your house it is likely that this will need to be released when your IVA is nearing completion.
Most often, the release of equity happens in the 3rd or 4th year of your IVA. The obvious benefit of releasing equity is that your IVA period is shorter and sometimes when there is a large amount of equity involved, the length of the IVA can be just a week.
It's worth remembering that that an IVA equity release will never leave you in financial difficulties. You may be left with larger mortgage repayments, but these will always be affordable for you because the agreed monthly IVA payment will act as a baseline for any future mortgage payments.
So, if you are paying £400.00 per month towards your IVA when the equity in your house is released and the IVA is completed, the £400.00 would typically become the basis for your future mortgage payments - thus ensuring you are paying an amount you can feasibly afford.
Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
Are there any alternatives to equity release in an IVA?
Yes. If you have a friend or family member who would be willing to put forward the value of the equity, your creditors will accept this instead. As long as the creditors are being offered a one-off lump sum that is equal to the value of the house equity, they will be happy. Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
Can I keep my car with an IVA?
It's usually possible to keep possession of your car, especially if it is required for work or family reasons. However, if your car is financed in some way (for example on a Hire Purchase agreement), the outstanding balance cannot be included in the IVA because the finance company would just repossess the car. In our experience, more often than not, an IVA can take place even while you are making Hire Purchase payments. When the Hire Purchase agreement is completed, the monthly payments must become a contribution towards the IVA instead.
We've found that in some cases, the best course of action is to sell the car back to the Hire Purchase finance company straightaway. If doing this leaves you with a debt to the finance company, this debt can then be included within the IVA.
Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
Can I keep my savings or endowment policy with an IVA?
If you do have an endowment policy or any significant savings, the capital will have to be released and offered to the creditors as part of the IVA agreement. For further details and advice on whether an IVA is right for you, contact one of our fully trained debt advice team, They are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
What happens if my personal circumstances change whilst I'm in an IVA?
If you are in an IVA and your personal financial situation changes - for example you get an inheritance or win the lottery - this must be notified to your creditors.
When the creditors voted on your IVA proposal, they were voting for at least a minimum amount of their money back over the 5 years, but they do retain the right to have all of the debt repaid should your circumstances improve.
There is always usually a "Windfall clause" in the terms of an IVA. This states that any additional money that you come into during the term of the IVA are to be shared for the benefit of the creditors (thus giving them a better dividend, and getting closer to the 100% that they are always entitled to receive back).
If you fail to disclose such additional benefits, the IVA proposal could fail and you could be in a worse financial situation than when you started.
Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
Will my lifestyle change dramatically if I do an IVA?
No. Nobody will force you to change your lifestyle if you enter an IVA (providing it's not excessive). Your creditors will want to be sure you have a reasonable standard of living, and there are a series of guidelines that are in place to ensure this.
However things such as a social life, lottery, and smoking are not seen by the creditors as essential living expenditures and you will be expected to live within your budget as much as possible, which is why it is essential that you cover all the normal household living expenses on your financial statement.
Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
What are the general criteria required for acceptance of an IVA?
The requirements for acceptance of an IVA have changed over time but generally they are now the following:
Step 1 – You have debts that are greater than £15,000.
Step 2 – You have three or more different creditors.
Step 3 – You have disposable income of over £200 per month, assets to release or a 3rd party who is willing to contribute into the IVA arrangement.
You must be able to pay creditors at least 25 pence in the pound. In our experience, many IVA cases fail because payment of a decent monthly amount is not feasible.
Step 4 – You have a regular income stream as some IVA cases can fail because an applicant's income is irregular or unreliable.
Step 5 – You have been able to show that you have allowed for reasonable necessary living expenses such food, council tax, water, gas etc.
Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959.
My IVA has been rejected? What happens now?
It's worth remembering that at least 75% of your creditors must vote in favour of your IVA proposal if it is to be accepted. When they get your proposal (prepared by your Insolvency Practitioner), your creditors will want to be sure that the IVA offers them the best solution. They will take into account all the assets you may have (car, house etc) and will look at how long it has been since the credit was taken out. They will then ask themselves "Is this IVA proposal reasonable or have we more chance of getting our money by pursuing for bankruptcy?"
If your IVA is rejected you will still be incurring interest and other charges and your creditors can still take legal action against you. However, there are some options open to you.
Firstly, you should discuss your situation with the Insolvency Practitioner who prepared your IVA proposal. They should be able to help you understand why your IVA was rejected and, working together, you may be able to find a way to overcome these issues and resubmit your proposal. It could be that it was just one creditor who had an issue for example.
If it is not possible to re-submit your IVA proposal, it may be that a debt management plan could be suitable. Working via an authorized debt management company, these plans allow you to repay all your outstanding debt by using any surplus income you may have. However, please be aware that debt management plans do not guarantee that interest and charges are frozen.
Your third option could be to offer your creditors an Informal Arrangement. In this situation, you would typically offer to make repayments of your debt pro-rata (i.e dependant on the size of each creditors claim). Sometimes this is suitable but it does mean that you would have to deal with your creditors directly yourself.
The final option is to file for bankruptcy. You can find more detail on the issues surrounding bankruptcy here but in most cases, bankruptcy really is your last resort.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
My creditors have approved an IVA, what happens now?
Congratulations! If your IVA proposal has been approved, you can now take the next step to becoming debt free but it's important that you do not lose focus on the detail of your IVA agreement.
1) Make sure you make your first IVA payment on time and ensure that all your future IVA payments are also made on time. This ability to "pay when you say you are going to pay" will give your creditors comfort and it's a good discipline for you too.
2) If your IVA is being paid by standing order or direct debit, make sure you allow plenty of time to get them in place before the actual due date. It's always good to check and double check with your bank!
3) Right from day one, ensure that you rigorously follow your individual financial statement. Only by doing this can you ensure that you will have enough money each month to make your regular IVA payment.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
My creditors want to amend my IVA proposal before approving it. What should I do?
Sometimes, creditors will ask for amendments or modifications to be made to a proposed IVA before voting to approve it. This is usually because they think that the proposed IVA changes would ensure that more funds could be made available to them.
You do not have to accept the requested IVA modifications but you do then risk failure of the IVA (you may not get 75% of the creditors to approve it).
Be aware however that if you do accept the requested amendments, you are then bound by them and the IVA will only come into force once those criteria have been met.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy.
We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
I need to sell some assets as part of my IVA proposal. What do I do now?
It's quite normal for an IVA proposal to include the requirement for you to sell or "realise" some of your assets. These can be things such as a second car or an endowment or financial policy. It is your responsibility to ensure the assets are sold. You then need to arrange for the proceeds of the sale to be handed over to the company/person who is supervising your IVA.
Selling assets such as a car can be quite straightforward (ebay, local car dealer etc) but some assets such as endowment policies can be a little more complex. Firstly you should make contact with your policy provider to get a "surrender value" from them. This will be the amount of money they will pay you for the policy as it currently stands. You will then normally have to write to them to confirm that you want to surrender the policy. Only then can the monies be released to you. These monies should then be paid into the IVA arrangement immediately.
It's worth mentioning that some IVA's require you to sell your house to release equity. Normally this takes place just before the end of the IVA arrangement but sometimes this needs to be done earlier.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
I've missed one of my monthly IVA payments, what will happen?
It is really vital that you stick to the payment agreement set out in your IVA proposal, but if you think you may have to miss an IVA payment or know that you are going to be late with a payment, you must inform the supervisor of your IVA immediately.
It may be that you have a valid reason for being late/missing your IVA payment and, if this is the case, there will be no negative effect on your IVA. However there is normally a clause in the IVA agreement that states that if two or more payments are missed, the IVA can fail and you will be left facing bankruptcy.
Sometimes your financial situation can change so that the payment agreement you entered into under your IVA is now not feasible you simply cannot afford to pay the full monthly amount. If this is the case, you must inform your IVA supervisor immediately. They will help to analyse your new income and expenditure and will decide whether it is possible to call a second creditors meeting to make a new IVA proposal.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
My IVA has been approved, how do I deal with my creditors?
Once your IVA has been approved and is in place, you will no longer have to deal with any of your creditors either by phone, letter, email or face-to-face. Your IVA also protects you from any further action that is threatened by your creditors. Indeed, if you are contacted by a creditor, you should simple inform them that you are now in an IVA. Your creditors should all be aware of your IVA as they will have been sent a copy of the Chairman's report from your Creditors meeting.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
My IVA has been approved but I now have additional creditors. What do I do?
It's really important that all of your unsecured creditors are disclosed before your IVA proposal is finally created. If you don't include a creditor on your IVA, they can't be bound by the IVA terms and they could still take action against you.
If you find yourself in this situation, you must let your IVA supervisor know about it as soon as you can. They will be able to give you advice as to whether the additional creditor could have their debt added to the IVA.
But a word of warning your original creditors voted on your IVA proposal based on getting a certain dividend from the IVA. Obviously, by adding an extra creditor to the IVA, the dividend that all the creditors stand to gain will be diluted and reduced and they may not be prepared to accept it.
If you find yourself in this situation you should get advice as soon as possible. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
I'm finding it hard to afford my monthly IVA payment, what should I do?
Please don't panic if this happens to you. Keeping up with your monthly IVA payment is vital, but sometimes your personal circumstances may change in such a way that your income decreases (job loss or job change for example). This then causes affordability issues with your IVA payment. Contact your IVA supervisor immediately. They will be able to offer you guidance and advice as to how this could affect your IVA. In some situations, you may be able to re-pay any missing payments at the end of your agreed IVA period ask your IVA supervisor whether this may be possible.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
I have received an IVA "Notice of Breach" but I'm still having payment problems and can't see a solution. What can I do?
Breaching your IVA agreement is a serious situation. If, after discussion with your IVA supervisor, you think it will be impossible for you to make up any missed payments, your IVA Supervisor will normally inform your creditors and request a "variation meeting".
Working with your supervisor and the Insolvency Practitioner, a new financial statement of your affairs will be created and a revised IVA proposal can then be offered to your creditors.
Your creditors will then decide whether to accept your new IVA proposal. If they don't accept them, the IVA will be classed as "failed" and a Certificate of Termination will be issued with copies being sent to you and your creditors.
A bankruptcy petition will then be raised against you. The funds required to do this will be gained from the original IVA (sufficient monies will have been retained by your IVA supervisor to do this).
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
Can I settle my IVA early and how do I do it?
Yes, with the agreement of your creditors, you can normally settle your IVA early.
But it's worth remembering that the dividend that your creditors agreed to in your IVA is the absolute minimum that they will accept.
So if you offer to finish the IVA early. They will expect the settlement to be based on the monies that are truly outstanding to them not just the reduced payments they agreed to in the IVA.
If you do happen upon some extra funds that could help in your IVA, the first thing to do is to discuss things with your IVA supervisor. Working with you they will be able to decide whether an offer is fair to yourself and your creditors.
Different ways to settle your IVA
There are a number of different ways you can settle your IVA early. Firstly, you may have a friend or family member who is willing help. If this is the case, your IVA supervisor will want confirmation of the origin of the funds and whether the offer is actually realistic. Secondly, you could raise funds for your IVA by selling your house. Thirdly, you could release equity in your property by taking out a re-mortgage and settle your IVA this way.
The process of settling an IVA
If you wish to settle your IVA early, you must first make contact with your IVA supervisor who will then arrange a "variation meeting". At this meeting, your creditors will meet and consider your settlement proposal. They will take into account your new financial statement (which will have been prepared by your IVA supervisor and yourself). If your proposal is accepted, they will agree upon a time limit by which the funds must be made available (most often, three months). Assuming that the funds are paid on, or before the allotted time, your IVA will be ended.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
Information on varying an existing IVA
When you started your IVA, you did so based on your financial circumstances at that time. But as we all know, financial situations can change and sometimes you may need to vary the terms of your IVA.
The most common reason for varying an IVA is a change in employment. You may have been made redundant or changed jobs with a lower income, but you may also have come into some money and may be able to settle your IVA early.
In either case, the notes below should help you to understand the process you would need to go through to vary your IVA.
• If you are considering varying your existing IVA, the first thing you should do is to make contact with your IVA supervisor. Your supervisor will be able to advise you on whether varying your IVA is an option . If it is, they will work with you to create a new set of financial proposals. You will need to approve and sign these proposals before they can next be forwarded to your creditors.
• Your IVA supervisor will set-up a new creditors meeting and your creditors will need to vote whether or not to accept your IVA variation proposal.
• Assuming that your creditors agree to the revised IVA proposal, new documentation is produced to this effect and you must then abide by these new IVA terms and conditions.
• If your creditors do not accept the revised IVA proposal and you have not defaulted on your existing IVA, you must continue with your original monthly payments. However, if your creditors don't accept your revised IVA and you find you cannot keep up with your original payments, it's likely that your IVA will fail.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
What happens when an IVA ends successfully?
When the last payment of your IVA agreement has been made, your IVA is ended. Your IVA supervisor will work with you to ensure that all payments have been cleared successfully and that any monies due to be released via asset sale are also passed on to your creditors. This process usually takes 2-3 months.
Once all the relevant IVA checks have been carried out, a Certificate of Completion is issued and any securities placed against your property or other assets are also removed.
At this stage, your IVA supervisor will provide you with a full breakdown of all the payments into your IVA. You will be able to see, in detail, how much was received by creditors and also how much was paid out in IVA fees.
The Certificate of Completion is your proof that you have completed the IVA and that those creditors (named in your IVA) can no longer pursue you for any additional money.
Your IVA supervisor will then arrange for your IVA to be registered as "completed" with The Insolvency Service.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
I've completed my IVA but one of my original debts was excluded. Do I still have to pay that debt?
If you have any ongoing debts that were excluded from the original IVA (for whatever reason), you will still have to pay these debts once your IVA has completed.
It is really important that you disclose and include all your unsecured debts in your IVA. If the debt is in the IVA, your creditor cannot take legal action to recover it. If it is not in the IVA, your creditor is within their legal rights to pursue you for it.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
I am about to complete my IVA but have received another debt claim. What should I do?
If you get additional debt claims at ant stage in the term of your IVA, you should inform your IVA supervisor immediately. They will want to understand why this debt was not included at the start of your IVA.
It may be that there is a genuine reason why the debt was not included. If the value of the additional debt is more than 5% of the overall debt included in the IVA, then this can be termed a "breach" and there is the possibility that your debt could fail.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy.
We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
Exactly how do creditors get their money in an IVA?
Successful completion of my IVA
The creditors in an IVA are normally paid an annual dividend. This dividend is distributed by the IVA supervisor and is based on the total amount of money collected in the IVA account after deductions are made for the costs of IVA administration. After all the monies collected have been paid, the IVA account is closed.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
Who benefits from any interest earned in my IVA account?
The creditors in an IVA are the sole beneficiaries of any interest earned during the IVA term.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
What is an IVA Certificate of Completion?
Once an IVA has been completed, a Certificate of Completion is issued. Copies of this certificate are passed to your IVA creditors who will then formally write off any outstanding liabilities you have with them.
Your IVA Insolvency Practitioner will then notify The Department of Trade and Industry, Court Service and Creditor Reference Agencies that your IVA has completed. But your credit file will show the completed IVA for six years. So, if you complete your IVA in the standard five-year period, your credit file will show your IVA for a further year.
You will also receive a statement that will detail all the statement will also be issued to transactions of monies received and paid out during the term of your IVA.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy. We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
Why does an IVA fail?
There are a number of reasons why an IVA can fail. Usually, however it is because there is not enough money being paid into the IVA account because your personal situation has changed.
In this situation, a Notice of Breach is issued which gives you just 30 days to rectify the problem and introduce funds into your IVA account.
If, after consultation with your IVA supervisor, you find that you cannot afford to introduce further funds or keep up with your IVA, then your IVA supervisor will have to end your IVA by issuing a Notice of Termination. This is a serious situation to be in as you will lose the protection afforded to you by the IVA. Your creditors can then puruse you for the outstanding debt and you may become the subject of a petition for Bankruptcy.
If you are in debt and are considering an IVA (Individual Voluntary Arrangement) it really is vital that you get good quality, ethical debt advice. Our debt advice team are all highly trained and will listen to your case with empathy.
We're open until 9.00pm 7 days a week on 0800 389 5959. Please give us a call or fill in our online form and we'll call you.
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