Individual Voluntary Arrangements (IVA) FAQ's
Below is a list of the most frequently asked questions about IVA's. If
the question you want answered does not appear please do not hesitate
to contact us and we will answer it for you.
- What is an IVA.
- Who can enter an IVA.
- Will I lose my house.
- Can I stay in business.
- I am a professional person-will it affect my position.
- Will it become public knowledge.
- How long does an IVA last.
- Which creditors can be included in an IVA.
- Can I enter into an IVA if I have already received a Statutory Demand.
- Can I obtain an IVA if a Bankruptcy Order has been made against me.
- What happens if I don't keep up the payments on my IVA.
- What happens once I finish paying my IVA.
- Can I enter an IVA if I already have CCJs against me.
- Does it make a difference if I am a homeowner.
- Do I have to tell my partner.
- Does an IVA cover all of my debts.
- What is the difference between a secured and unsecured debt.
- Do creditors have to accept an IVA.
- Can an individual creditor refuse to accept an IVA.
- Will the IVA prevent my creditors taking further recovery action.
- What if my circumstances change.
- Can I cancel the IVA once it is set up.
- What happens if I just stop paying into the IVA.
- How long does it take to set up an IVA.
- Will interest and other charges be frozen while the IVA is being set up.
- Can a creditor take further recovery action before the IVA is approved.
- What happens if the IVA is not approved.
What is an IVA.
An IVA is a legal process introduced in 1986 as part of the insolvency act that allows a person struggling with debt the opportunity to make a formal proposal to their creditors in order to clear their debt. The purpose of an IVA proposal is to demonstrate to creditors that it would be of greater benefit to themselves and the debtor, in comparison to the debtor being made bankrupt. A creditors meeting is held and if the proposals being made are accepted by the required majority of creditors then they become legally binding on all creditors notified of the proposal. Once accepted, creditors have no alternative but to stop any further interest and charges accruing on the outstanding debts. The benefits of an IVA are...
- You're GUARANTEED debt free in 60 months
- It wipes up to 75% off all un-secured debt
- It allows one affordable monthly payment
- All interest FROZEN and charges STOPPED
- Tenants & Homeowners are able to apply
- It relieves pressure and you regain control
Upon the successful completion of the IVA the debtor will be considered debt free even though they may not have actually paid off all of their debts in full. Any outstanding balances are written off (known as a composition of debts) and the debtor is then free to make a fresh financial start. Call us now on 0800 088 7505 to find out more.
Will I lose my house?
No. But should you have equity in your house then this will be taken into account at some time during the arrangement (usually at the end). If there is a joint owner of the property and this person is not party to the debts in the arrangement then their share of the equity does not have to be included in any offer to creditors.
Which creditors can be included in an IVA?
Creditors that can be included are: banks, finance companies, credit, store and charge card companies, HM Customs and Excise (VAT), Inland Revenue and even loans from friends and family. However, you cannot include your mortgage, hire purchase, student loans, fines, debts incurred through fraud, maintenance/child support arrears.
What happens once I finish paying my IVA?
At the end of the process the Insolvency Practitioner will issue you with a 'Statement of Completion', typically within 3 months of the final payment. The Insolvency Practitioner will also send a copy of this to the Insolvency Service so that they can amend their records.
What is the difference between a secured and unsecured debt?
A secured debt is a debt secured against an asset that you own. Typical secured debts will be a mortgage, a secured loan, a car loan, etc. An unsecured loan is any loan not secured on an asset, such as a bank overdraft, a personal loan, a credit card, store card, etc.