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What is an IVA?
How long does an IVA last?
How much does it cost to get an IVA?
Will my credit rating be affected?
What about fees?
What about no-win no-fees?
Will my creditors agree to an IVA?
When my IVA is finished, what then?
What if I default on my payments?
What are the advantages of an IVA?
Can I enter an IVA if I have a Bankruptcy order against me?
How do I go about setting up my IVA?
What is an IVA?
An IVA is an Individual Voluntary Arrangement. It is a legally binding contract between you and the people that you owe money to, your creditors. It is governed by the Insolvency Act 1986 and this normally lasts for 60 months. During this time you pay a fixed amount per month that is then divided up evenly and paid to your creditors.
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How long does an IVA last?
Typically an IVA can last for about five years, but in some cases this can be extended.
It is also possible to do an IVA in a shorter period of time, if you can produce a partial or full lump sum of money.
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How much does it cost to get an IVA?
This will depend upon your income, expenditure, and personal circumstances. We treat every case individually. However, you will only pay what you realistically can afford and not what the creditors are asking for. This fixed amount is then paid each month by standing order.
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Will my credit rating be affected?
Whilst you are in an IVA, you will understandably not be able to obtain credit of any sort and you will have to give up any existing credit that you have. This continues until your IVA is complete. So, your credit rating is not affected forever. When it is finished your credit rating should begin to repair itself.
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What about fees?
The fees for an IVA are all set by the creditors (no matter which provider you use), so if your IVA application is successful, the only thing to worry about is whether you have chosen the right Insolvency Practitioner or not.
All fees are taken out of your affordable monthly payment so you will never be asked for additional fees or receive a bill from us.
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What about no-win no-fees?
We work very hard at making your IVA proposal successful, but if for any reason your IVA does not go through, we charge nothing whatsoever.
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Will my creditors agree to an IVA?
Most creditors are fully aware of an IVA, as it's been in existence for over twenty years. If 75% of your creditors by value vote in favour of your IVA, then all creditors are bound by its terms. Creditors can suggest alterations to your proposal and you can choose whether to accept them or not. If your creditors vote against your proposal you still have the option of an informal arrangement.
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When my IVA is finished, what then?
As long as the terms of the proposal have been fully carried out, your creditors will have no further claim against you and the balance of any unpaid debts are written off.
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What if I default on my payments?
If you don't adhere to the terms of your IVA and miss 3 or more payments then the supervisor of the IVA can start bankruptcy proceedings against you.
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What are the advantages of an IVA ?
-You only have to make one monthly payment or in some cases a one-off payment
-The stigma of bankruptcy is avoided
-Unlike bankruptcy, an IVA is not reported in local newspapers
- An IVA is just between you and your creditors, so it's confidential
- Protection from creditors, once the IVA is agreed your creditors cannot bring any action against you as long as you comply with the IVA
-Unsecured debts cleared usually in 60 months
-An IVA could safeguard your property
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Can I enter an IVA if I have a Bankruptcy order against me?
If the bankruptcy hearing has not taken place then our Insolvency Practitioner would issue an Interim Order to halt proceedings while an IVA proposal is put together. If the bankruptcy order has already been issued it is still possible to propose an IVA but it is more difficult.
Remember any court fees will be added to your debts.
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How do I go about setting up my IVA?
Initially all you need to do is simply complete the IVA online application form. By doing so you are asking us to review your current circumstances and advise whether an IVA is indeed the most appropriate solution to your problems. Once we receive your statement we will either confirm an IVA as appropriate or offer alternative solutions. If an IVA is deemed appropriate, and you still wish to pursue this option, we provide you with an opportunity to ask one of our specialists any further questions you may have. We will then produce your "Proposal to Creditors" which explains in detail the circumstances of your current problems and your proposals to repay what you can reasonably afford. The proposal is sent to you for review. If you're happy with everything you sign the proposal and we commence formal negotiations with all your creditors to put the IVA in place. At no time throughout this whole process (usually 6-8 weeks) do you pay any monies over to us.
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