Individual Voluntary Arrangements (IVAs)
Payments from £180
Usually lasts 5 years
Any remaining debt will be legally written off
What is an IVA?
If you are struggling with your debt repayments there is government legislation available, called an IVA, which could help you to write off debt you cannot afford. It is a type of "Debt Forgiveness Program".
Under this government initiative you need to show that you cannot afford your debts. This is done by showing that your monthly living costs including debt repayments are more than your monthly income.
You agree to pay a monthly amount that you can afford and at the end of the plan any remaining debt is forgiven and written off. On average, our clients achieve a debt write off between 60-70% of their debt.
IVA Advantages
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1 easily affordable monthly payment based on your income and expenses |
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Unlike some of our competitors, we do not charge any Upfront Fees, saving you £100s |
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An IVA offers you protection from creditors |
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Creditor pressure stopped as creditors must deal with us |
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Most IVAs last for just 5 years (occasionally longer, although some can last a few months) |
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All interest frozen immediately |
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Suitable for tenants or homeowners, individuals or couples, and even business owners |
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We can setup an IVA in as little as 4 weeks |
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Only 75% of your creditors (by debt balance) need to accept your proposal to make it legal |
IVA Disadvantages
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If you are a homeowner with equity in your property you may be required to introduce part of your share of this equity in the final year of the arrangement.A remortgage may be restricted and on less favourable terms. If for some reason you can't get a remortgage your arrangement can be extended for up to another year. |
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If your circumstances change, and your insolvency practitioner can't get creditors to accept amended terms, the IVA is likely to fail. You will still owe your creditors the full amount of what you owed them at the start, less whatever has been paid to them under your IVA. |
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If your IVA fails, your creditors may request that you be made bankrupt. This will always be discussed before your arrangement commences |
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Your credit rating may be impacted for up to six years from the commencement of your IVA. |
IVA Questions and Answers
What Living costs are allowed in an IVA?
In an IVA you will have an agreed budget for your all your living costs. There are allowances made for this in the agreement. These expenses will be mostly based on what you currently have to pay out each month. You should declare all normal monthly expenses to your creditors so they understand your situation more clearly. There may be some restriction on some expenditure items, such as mobile phone for example.
Your IVA payment is what is left after all your living costs have been taken into consideration.
Who can do an IVA?
An IVA can be used by nearly all UK residents.
- Single people
- Married people
- Business Owners
- Homeowners
- Tenants
National Debt Relief are a "No Upfront Fees" IVA provider
There are many IVA companies who can help you with an IVA. Almost all of these companies charge upfront fees before starting work on your case. We do not do this. Any delay in your case simply costs you extra money and causes more hassle from your creditors.
When you apply for an IVA with us we start work on your case immediately. We can have your IVA in place in 4-6 weeks. When it is accepted all you will have to pay is your monthly payment. This covers all of our professional costs and your payments to your creditors.
If it is not accepted by your creditors you will pay nothing whatsoever.
Types of IVA
