What exactly is an IVA?
If you are having difficulty repaying your unsecured debts, you can use an IVA as a debt solution. An IVA is a formal agreement between you and the people to whom you owe money. The IVA will not be managed by you; instead, it will be managed by a qualified Insolvency Practitioner (also known as an “IP”).
An IVA allows you to pay back a small portion of your total debt based on your ability to pay. Any unpayable debt will be completely erased. You can pay off your Individual voluntary agrement with a single low-cost monthly payment.
Your remaining debt is completely written off once the fixed term of your IVA is completed.
Do you qualify for an IVA solution?
We offer free, qualified advice to help you solve your debt problems for good at IVA Advice. You can rely on us to help you reclaim financial control because we have many years of experience and a team of friendly experts to talk to.
You can find out in a matter of minutes if you simply click the button.
What Debts Can I Include in an IVA?
In most cases, an IVA will include all of your unsecured debts. The most common are:
- Credit cards score from HSBC, Natwest, Barclaycard, Vanquis, Asda, Virgin, and Capital One
- Lending Stream, QuickQuid, Drafty, Cashfloat, and Satsuma are examples of payday lenders.
- Overdraft debts owed by your current or previous bank account
- unprotected loans
- Debts owed to HMRC
- Debts owed to the council/arrears owed to the council
- Moorcroft Group, Lowell, PRA Group, Advantis, Opos, Cabot Financial, and others have bailiff debts.
It is critical that the companies to whom you owe money are voting creditors. Only when 75 percent or more of your voting creditors agree to your IVA can it be implemented. A credit check will be performed to ensure that your IVA company has all of your creditors. All of your credit agreements, including secured loans, mortgages, credit cards, and payday loans, should be listed here. Your IVA must include all of your unsecured creditors, not just those who show up on a credit check. It is difficult to add extra debt once the arrangement has been agreed upon, so please make sure all of the details of your debt are available today so that the terms of the services available can be discussed in detail.
It may or may not include any court fines, student loans, council tax arrears, child support arrears, previous individual voluntary arrangements, or parking charge notices that must be included in your IVA.
What Debts Aren’t Eligible for an IVA?
Mortgage arrears – unless you have moved out rent arrears – unless your landlord agrees to the proposal
- debts owed on secured loans
- guarantor loan obligations
- purchase debt for hire
- child support arrears/child maintenance arrears
- In an IVA, other secured debts are not permitted.
- court fines
- debt value/debt values are extremely low.
- insurance policy arrears and insurance policies
- charity donations for debt
- national insurance liability
- A debt of a Limited Company
- loans for students
What Debts Aren’t Eligible for an IVA?
You will not be required to provide anything when you first begin. The initial call’s purpose is to get a sense of your debt situation and point you in the right direction.
An Individual Voluntary agreement isn’t always the best option, and you may be directed to a debt charity for help, such as the Money Advice Trust, Money Advice Service, or Citizens Advice Bureau. A formal debt solution will not always be recommended to you. If an IVA is recommended for you, you may be contacted by a member of the Insolvency Practitioners Association (IPA) or a company licensed by the Financial Conduct Authority (FCA).
If you decide to apply, you will need to provide the following information:
3 months of pay stubs Paystubs will be required to provide proof of earnings to the Insolvency Practitioner. If you are not employed, evidence of how you receive your income will be required. This is significant because we will need to demonstrate that you can make payments on your debts for the full 5-year term. Your full name and national insurance number should be clearly displayed on your payslip. This also allows the Insolvency Practitioner to verify your employment status.
Bank statements – Three months’ worth of statements are required to show all of your incoming and outgoing payments. Online statements are usually fine as long as your sort code and account name are clearly displayed alongside your name and address.
