Learn more about IVAs and start your journey to overcome problem debt
An IVA stands for Individual Voluntary Agreement and is a legally binding arrangement with your creditors to pay all or part of your debts. This formal debt solution can help people residing in England, Wales and Northern Ireland regain control over their finances by consolidating all eligible debts into one monthly payment. Your Insolvency Practitioner works with the creditors to agree on how much will be paid.
All IVAs have fees named Nominee, Supervisors and Disbursements but the good news is that these are included within your payment and the time frame. These are also agreed upon with your creditors from the outset.
Typical fees are as follows:
Nominees and Disbursement Fee – £1,900
Supervisors Fee – £1,750
After you get in touch, your personal financial situation will be reviewed to assess your debt level and what you can realistically afford to pay each month
We can refer you to one of our preferred IPs – Insolvency Practitioners – if an IVA is suitable. If the formal proposal made to your creditors by your Insolvency Practitioner is accepted, extra charges or interest can no longer be added.
An IVA agreement typically lasts 60 months. Providing all your payments during this time have been made, all remaining unpaid debt will be written off.
One realistic and affordable payment over a set period of time
After successful completion of your IVA, your creditors will write off any unaffordable debt
Protected legally – after your IVA has been approved, creditors included in the IVA will stop contacting you directly
Your affordable monthly payment will cover any fees involved
Interest & charges from the debts included in your IVA will stop
Support from our team who can help you through the journey
Your expenditure will be reviewed at the start of your IVA arrangement and each year to ensure your payment remains affordable
Our team will handle your creditors
A clear date and roadmap to becoming debt-free
Creditors don’t have to agree to an IVA proposal, so it’s not guaranteed
It will be recorded on your credit file for six years
Your IVA will be held on the public insolvency register
There are costs involved with an IVA which will be explained and detailed in your IVA proposal
If you own a property/properties, you may be asked to release equity from the value to pay off debts. A remortgage may attract higher rates of interest, or if no remortgage is available, an IVA may be extended by 12 months.
If your IVA fails, it may result in Bankruptcy
If you earn additional income, a percentage of this may need to be paid into the IVA
Only unsecured debts included within the IVA may be discharged at the end of the period, meaning any unsecured debts not included remain outstanding
Borrowing any amount over £500 can only be done with express permission from your Insolvency Practitioner
There are spending restrictions for those entering an IVA
In helping you to get an IVA, your insolvency practitioner (IP) will act as a Nominee, and they can draw a Nominee’s fee for the work entailed. Although this fee will be agreed upon with you, your creditors have the final say if they agree to it when they consider your IVA proposal. The fee is usually fixed and paid from realisations (the money you pay) in your IVA.
The Nominee fee is in relation to the work carried out by the IP in assessing your financial situation and understanding all available options in deciding that an IVA is a suitable option for you. Once the IP has all the relevant information, they will prepare a proposal ready to present to your creditors to allow them to consider the IVA.
When approved, the IP then becomes the supervisor of your IVA. Their role as a supervisor is to monitor and collect your contributions and conduct regular reviews of your income and expenditure. Your supervisor can seek to change or terminate the arrangement if appropriate, but ultimately, the supervisor will usually conclude your IVA after 60 months.
Supervisors’ fees are calculated on a monthly basis, normally as a percentage of realisations (the money you pay). This is based on the assumption that the arrangement runs for its full term and that you’ve cooperated fully. The arrangement does not have to be varied, and the creditors don’t increase the amount of supervision needed in your original proposals. All of this will be discussed with you.
As well as fees, your insolvency practitioner will incur disbursements. These are the costs and expenses incurred during the set-up and administration of your IVA. Examples of disbursements are bonds (case-specific insurance), postage costs, registration of the IVA and software maintenance. Some disbursements are payable in priority to fees and are always fully disclosed in your IVA proposal. These are agreed with your creditors and are drawn from the IVA.
At the meeting, creditors will consider all fees and disbursements before agreeing on the terms of them. Full disclosure will be given to you before your IVA is approved to make sure you are happy with the outcome.
Any changes in your circumstances during your IVA must be reported/communicated to your IVA supervisor who will review your situation and assess whether changes to the arrangement should be made.
Many types of debt can be involved in an IVA, including the following:
In most cases, secured debts cannot be included in an IVA. Examples of debts not allowed in an IVA include, but are not limited to the following:
Each case is assessed on an individual basis, which means that the time it can take to set up will vary. The amount of debts and creditors involved can increase the amount of time it may take to arrange your IVA.
An IVA will show on your credit file for six years. Your credit score may go down as a result of the IVA and may impact your ability to borrow additional credit.
You can cancel your IVA, but you should consider speaking to your IP first because doing so can lead to other debt recovery actions, such as bankruptcy. Your IVA is a legally binding contract, and your IP will work with you should you experience a change in circumstances. Your IP does have the discretion to consider reducing your payments or even allowing a payment break.
If your IP cannot assist you, they will normally recommend that your IVA be cancelled and suggest other ways to help deal with your debts.
We need proof to show your creditors that your outgoings are factual and evidence-based.
We assess your income and expenditure as a whole, therefore payments may not increase if your outgoings have also increased.
Learn more about the fees, costs and other key information associated with entering an IVA.
An IVA can affect different areas of your life, from your relationships to your career. Find out all the ways it could impact you to help you decide whether this is the right solution for you.
Specific criteria must be met to qualify for an IVA. Here we’re explaining everything you need to know about qualifying for this debt management solution.
If you’ve considered everything above and think this could be the right debt management solution for your personal circumstances, get in touch with us. We’re here to provide advice and any further details with no obligation to move forward if you change your mind or your situation changes.
Debt solutions can help with many unsecured debts, including:
Council Tax arrears, HMRC debt & benefits overpayment
Payday loans, bank loans & overdrafts
Credit cards, store cards & catalogues
Bailiff Enforcement & Debt Collector Action
County Court Judgements (CCJs) & attachment of earnings
Overcome problem debt with major creditors in the UK, including:
We pride ourselves on delivering the highest level of service to help people find a solution to overcome problem debt.
Read real reviews of our service on Trustpilot.
Start your journey today and see which solution suits your needs.
Speak to a debt help expert now on 0161 823 4974 or complete the form to book a call back.
Be guided every step of the way to get you back in control of your debts
Complete the online form or call us on 0161 504 7768.
Speak to a debt specialist to understand all your options based on your individual circumstances.
Gain all the information you need to make an informed decision about your financial future.
This may not be suitable in all circumstances. Fees apply. Your credit rating may be affected. IVAs are only available to residents of England, Wales and Northern Ireland.
The following debt solutions are available for residents in England, Wales & Northern Ireland:
A Debt relief Order is a formal debt management solution to deal with personal debts. DROs usually last for 12 months during which time you will stop making payments towards any debts included.
Declaring bankruptcy is a way to enter a debt-free life with some restrictions while also making sure your assets are shared among your creditors.
Working with a debt management company approved by the Financial Conduct Authority, you can come up with a plan for paying off your debts in monthly instalments which must be agreed upon by your creditors.
Free debt counselling, debt adjusting and providing of credit information services is available. You can find out more by contacting Money Helper.
