{"id":4186,"date":"2014-09-24T11:42:09","date_gmt":"2014-09-24T10:42:09","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=4186"},"modified":"2019-05-08T12:12:01","modified_gmt":"2019-05-08T11:12:01","slug":"debt-and-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/debt-and-an-iva\/","title":{"rendered":"Debt and an IVA"},"content":{"rendered":"\n

When it comes to unmanageable debt, it\u2019s impossible to say what will \nhelp in any particular situation. If your finances are becoming a real \nstruggle, you should speak to an expert as soon as possible. If \nbankruptcy is a real possibility, it\u2019s best to speak to an Insolvency Practitioner (IP)<\/strong>.<\/p>\n\n\n\n\n\n\n\n

Requirements<\/h2>\n\n\n\n

If your borrowing includes unsecured debt<\/strong> (e.g. \ncredit cards, unsecured loans etc), which is owed to 3 or more lenders, \nand totals \u00a315,000 or more, you may be able to use an IVA<\/strong> or Individual Voluntary Arrangement<\/strong>\n to alleviate it. If you have other debts that are secured (e.g. \nmortgage, secured loan etc) then other measures may be necessary to deal\n with those. However, if your unsecured debts make up a substantial part\n of your financial troubles, you may find that an IVA will be enough to \nget your total debt payments down to a level you can manage without \nhaving to worry about bankruptcy.<\/p>\n\n\n\n

Process<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

If you do go for an IVA, this will involve making a proposal to your \ncreditors, through which you will be offering to pay back a portion of \nthe debt over a period of time. You will pay one payment to your IP, who\n will administer the IVA and handle the distribution of the funds to \nyour various lenders. This means that you will no longer have to deal \nwith the creditors directly, as your IP will handle the negotiations and\n any communication with them.<\/p>\n\n\n\n

It is never guaranteed that your creditors will in fact accept your \nIVA proposal, but they will vote on it, and providing enough of them \nagree, it will go ahead and will cover all of the debts concerned. Even \nthough you will likely only be paying back some of the debt, when the \nIVA is finished any outstanding balance will be disregarded and the \ndebts will be effectively settled.<\/p>\n\n\n\n

Payments<\/h2>\n\n\n\n

To use an IVA, you need to be able to make sufficient monthly \npayments. It is normally the case that these will not be less than \u00a3200,\n but this does depend on your situation. Your IP will work out a plan \nbased on your income, outgoings, assets and debts. The proposal should \nalways be something that you can realistically manage, and should not \nleave you so short that you cannot maintain a reasonable standard of \nliving.<\/p>\n\n\n\n

There are sometimes additional measures required in an IVA, such as \nreleasing equity from your home. Sometimes creditors will request \nchanges to be made to the proposal that has been presented to them, \nhowever in this case your IP should make sure you are kept informed and \nagree to any changes before anything goes ahead.<\/p>\n\n\n\n

Future<\/h2>\n\n\n\n

If your IVA is accepted, and is successful, i.e. you manage to keep \nto the payments, it will offer you a very real chance to clear your \ndebts. Rather than having your debts swept aside, you should think of an\n IVA as a way to renegotiate their terms and to settle them fairly, \nleaving you free to move forward with your life.<\/p>\n","protected":false},"excerpt":{"rendered":"

If your borrowing includes credit cards, loans etc which is owed to 3 or more lenders, and totals \u00a315,000 or more, you may be able to do an IVA<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-4186","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/4186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=4186"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/4186\/revisions"}],"predecessor-version":[{"id":4204,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/4186\/revisions\/4204"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=4186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=4186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=4186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}