IVA

Help with your IVA

You may like to consider an IVA- This is a formal agreement between you and your creditors.  My Payment Plan offers straightforward advice on whether or not an IVA is appropriate for you.  We have helped people like you, for over 6 years and have a vast experience in providing unbiased advice to help people with debt problems.

What is an IVA?

An Individual Voluntary Arrangement or IVA is a legal binding agreement between you and your creditors. Each and every IVA must be overseen by an authorised Insolvency Practitioner (IP), qualified to act in personal insolvency procedures. There are fees payable but these are not in addition to what you pay each month. Fees are agreed between the IP and your creditors –and will be set at a level that is affordable for you.  The majority of IVA’s are based over a 5 year term / 60 months and within this time you re-pay back what you can afford.

 Is an IVA right for me?

An IVA is a simple way of formally agreeing to settle all your unsecured debts over a fixed period of time. The first stage of the IVA process is to calculate how much you can realistically afford to pay back over the 5 year period, taking into consideration your income and expenditure. Once the IVA is agreed, the Insolvency Practitioner will contact all creditors’ to stop any charges & interest from being applied.  It will prevent further action from taking place such as a bankruptcy petition, bailiffs or charging orders. 

Do I have to pay for advice?

My Payment Plan will provide you with free initial advice, to assess your situation. We will help you decide the best solution for you.  

What are the benefits of an IVA?

  • As it is a legally binding agreement, providing 75% or more of creditors who vote at the meeting of creditors vote to accept the IVA proposal, it will bind ALL of your unsecured creditors’ to the terms of the IVA.
  • Creditors whose lending is unsecured can’t take any further action.
  • Interest is frozen as long as you keep up your payments.
  • Your insolvency practitioner will help you prepare your proposal, including agreeing the level of your household and personal spending based on guidelines acceptable to creditors.
  • Usually, you make only a single payment each month or week.
  • Your insolvency practitioner is responsible for administering and distributing your payments.
  • On completion of the IVA, the balance of what you owe your creditors is written off.
  • You may be able to continue running any business you have.

What are the risks of an IVA?

  • It is public information published online on the Insolvency Register. This means it will be difficult to obtain extra credit or even change bank accounts.
  • You must check with employers’ that it does not affect employment.
  • The insolvency practitioner may require payment in advance for preparing your proposal and getting your creditors’agreement.
  • If there is some equity (value) in your home after taking account of the mortgage(s) on it, you will probably have to pay for your share, usually in the fifth year of your IVA, by remortgaging the property. If you can’t get a mortgage, you may have to continue making monthly or weekly payments from your income, for up to another year.
  • If your circumstances change, and your practitioner can’t get creditors to accept amended terms, the IVA is likely to fail. You will then 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, but may also have all interest and charges added back.
  • If your IVA fails, you may be made bankrupt.
  • Your credit rating will be adversely affected.

There are lots of elements to think about when considering whether an IVA is the correct financial decision for you. Please do not hesitate to contact us for free impartial advice, tailored to your needs. Our friendly and experienced advisors are ready for your call, so get in contact with us either by using our phone number or by completing the attached form on the contacts page. We will look to call you straight back

Who may be eligible for an IVA?

  • Minimum debt of £5,300
  • Disposable income of £70 per month
  • Maintaining debts through more credit which will run out and become too much to afford each month
  • Individuals’ involved in long term debt management plans with no clear finish date
  • Business owners with unsecured debt liability, wishing to continue trading  
  • Any individual struggling to maintain their living costs because of their commitment to their (unsecured) debts
  • Property owners under threat of charging orders from creditors 
  • Threat or action from bailiffs, court actions like bankruptcy or disconnection of your utilities, ie. gas, electricity etc.

If this solution is best for you we will refer you to one of our trusted partners.