What is an IVA?
An Iva is a legal agreement between you and your creditor ordered by the court to pay off your debt for a set period of time.
How long does the IVA last?
Usually, between three to five years.
How much do I need to pay each month?
Usually it will vary depending on how much you need to pay out and how much you are earning. Your insolvency practitioner will be able to work this out for you. But be sure that the amount they propose is right for you. Payment varies between £250-£300.
Can anyone enter an IVA?
Due to the fact there are costs involved in this process, it is only advisable for people with over £15,000 debts.
How do I go about getting an IVA?
Read here for details on what is the procedure of an IVA. If you are familiar with it and are ready to see your options, fill in an application form here.
What is the difference between IVA and Bankruptcy?
In bankruptcy, all your assets are used to pay off the creditors. In IVA your insolvency practitioner can negotiate which assets will be used to pay off the debt.
So why isn´t everyone entering IVA instead of Bankruptcy?
Like everything IVA has its advantages and disadvantages. IVA may not be right for everyone. IVA is particularly good if you think entering bankruptcy will affect your job. However, it is always advisable that people with a steady job and those who think this job will remain steady throughout the course of the IVA; it could be a better option for you. Since not being able to keep up with the repayments may trigger the creditors petitioning for bankruptcy.
What else should I know about?
Your Insolvency Practitioner will get their fee no matter what, and in order to get their fee they sometimes may put together a proposal that is not affordable for you. Remember, it´s about you not them! Therefore be hundred percent sure before getting yourself into any contract. Read the fine prints, ask questions, and get independent advice. Good place to get advice is your Citizens Advice Bureau, National Debtline, Consumer Credit Service etc.
Can I carry with my business?
Sure, unlike bankruptcy, and IVA offers you the chance to carry on with your business activities and your job.
Will my entering an IVA be made public?
No, this is a legal and confidential matter. Unlike bankruptcy, the creditors will get payments from you.
Which of my creditors will be included in the payment plan?
Creditors that can be included upon you entering an IVA are: finance companies, banks, credit cards, store and charge card companies, HM Customs and Excise (VAT), Inland Revenue an. Sometimes even loans from family and friends.
Payments excluded are: mortgage, hire purchase, student loans, fines, debts incurred through fraud, maintenance/child support arrears.
Do I have to be a homeowner to enter an IVA?
No, not at all. It does not make any difference. You can be a tenant or living with parents.
If I enter an IVA will that prevent my creditors harassing me?
Yes, once you are legally entered into an IVA your creditors can take no further action against you so long as you keep making the payments regularly.
How about if I want to cancel it?
Unfortunately you cannot cancel an IVA once you have entered it.
How long will it take to set up the IVA?
Usually, between, 6 to 8 weeks.
