Below are some of the most frequent IVA questions and answer that we are regularly asked. If you have any other IVA questions, get in touch and we will be happy to answer them for you.
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. The amount that you pay is based on what you can realistically afford.
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.
Anything you need to pay on a daily or momthly basis is classed as a living cost. This includes Mortgage/Rent, Food/Groceries, Clothes, Travel/Transport, Car HP, Fuel, Parking costs, Council Tax, Electricity, Gas, Heat and Light, Phone, Mobile, Internet, even Sky TV if you have it.
Most of the allowable expenses are included in the IVA payment calculator.
Your IVA payment is very easy to calculate. All you need to do is take your living costs from your income.
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.
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.
An IVA can be used by nearly all UK residents.
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.
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.
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.
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.
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.
NOTE: In an IVA you will have an agreed budget for your living costs. There are allowances for this in the agreement. These expenses will be mostly based in 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.
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.
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.
We are happy to provide you with debt advice only. We only charge a fee if you opt for one of our debt solutions. Fees will depend on which debt solution we provide and what your personal circumstances are. All fees will be discussed prior to commencement of any service or debt repayment plan.
Please note: From time to time we may refer you to other services providers or charities such as the CAB.
You can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. Click here for more information.
Star rating : 5/5
I had a pleasant reception, a simple concern and evaluation of my situation, an explanation of what could be done, when and how best a plan could be implemented that I could afford. THE RELIEF WAS AMAZING, back to some kind of normality.
I have been under the wing of National Debt Relief for almost 2 years and the attention and assistance provided has been just perfect. We are now looking at a mutually acceptable resolution to my financial situation in the near future. In brief, I would totally recommend the services of National Debt Relief. You will not be disappointed, to quote an old saying "I wish I had done it sooner--much sooner".
Written on 18/09/2013,
Absolutely fantastic from start to finish! Very efficient and had my iva completed within 4 weeks from initial phone call!
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