 | What Is An IVA?
This is a legal alternative to bankruptcy that allows you to make a formal proposal to your creditors if you are struggling with your debt. Insolvency practitioners will come to an arrangement with your creditors on your
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 | Who Is Eligible For An IVA?
You are eligible for an IVA if you have more than £15,000 debt, are employed and able to make regular monthly payments of at least £200. You must also have a minimum of 3 creditors.
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 | Why Should I Choose An IVA Over Bankruptcy?
An IVA is a more attractive option for you because you are not at risk of losing your home or car and the arrangement remains private between you, the creditors and the Insolvency Practitioner. If you file for
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 | How Much Will An IVA Cost?
There is no standard amount for all IVA cases, as each is assessed depending on your individual circumstances. This will depend on whether you have any assets and how much money you have after you living expenses have been subtracted from y
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| If I Choose An IVA – How Will The Process Work?
Once your application is successful, an IVA file will be put together on your behalf and presented to your creditors so that they may decide whether they agree with the proposals you have made. The IVA advisors
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| Do I Lose My Home If I Choose An IVA?
No, your home is not at risk if you agree to an IVA and your job is also protected!
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| Will It Become Public Knowledge?
No, an IVA is a totally private arrangement between you, your creditors and the IVA advisors.
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| What If I Do Not Keep Up The Repayments On An IVA?
Because this is a legally binding agreement it is essential that you keep up the monthly repayments that you have agreed to. If you do not, the supervisor of your IVA (the Insolvency Practitioner) will
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| Can Any Of My Creditors Refuse To Accept An IVA?
Yes they can. However, in the creditors meeting, if 75% of creditors agree to the IVA, it will be accepted. It must be noted that the 75% relates to monetary value and not the number of creditors who are voting.
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| What Happens If My Circumstances Change Whilst On The IVA Programme?
If you can longer afford the repayments due to a change in circumstances, your Insolvency Practitioner can request a variation to reflect your current situation.
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| Can I Cancel The IVA At Any Point?
No. This is a legal arrangement and when you agree to it you agree to a five year period.
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| What Happens If I Do Not Qualify For An IVA?
If this occurs, other options will be considered. These include debtmanagement, consolidation loan, re-mortgage, bankruptcy
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| I Am A Professional Person – Can I Stay In Business If I Undertake An IVA?
Yes. With an IVA you can continue to trade and make money as an independent trader or partner. However, the income generated will contribute to the repayment to creditors rather than
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| Do I Need To Inform My Partner/spouse?
No. Because this is a private arrangement between you, your creditors and the Insolvency Practitioner working on your behalf, you are not obliged to tell your partner when you undertake an IVA.
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| How Long Does An IVA Last?
A maximum of 5 years.
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| If I Have Filed For Bankruptcy, Can I Still Apply And Qualify For An IVA?
Yes. If the creditors feel that the IVA will be more beneficial to them than a bankruptcy proposal, the latter will be annulled.
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| Does An IVA Affect My Credit Rating?
Yes. When the IVA has started you cannot obtain any further credit for the period that the IVA is in place (5 years and sometimes one year after the IVA has been completed). A note will be placed on your credit file
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| I Do Not Own A Home – Can I Still Qualify For An IVA?
Yes. Any tenant can apply for an IVA.
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| Will I Need Another Loan To Repay The IVA?
No, because you will not qualify for a further loan once the IVA has started.
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| Why Should I Choose An IVA Over A Debt Management Programme?
Debt Management is an attractive solution and can significantly reduce your payments each month. Nonetheless, you will still need to pay the total that is outstanding with your creditors over the period
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| I Have A Student Loan – Will This Be Included In The IVA Programme?
No
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| What If I Have Equity In The Property?
If you have equity in the property, you will need disclose this and it is likely that the Insolvency Practitioner will ask you to
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| What About My Banking Options?
You will be entitled to a regular bank account with any bank. However, you will not be entitled to an overdraft, cheque book or loan with the bank.
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| Will The Debt Collectors Still Threaten To Take Action Against Me?
No. Once the IVA has started the creditors are tied by the same legal agreement as you. This means that they cannot contact you. However, if you breach the agreement, the creditors are entitled to take further action.
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| What Happens At The Credit Meeting?
The purpose of the creditor meeting is to either agree or reject the IVA proposal. To accept the proposal, 75% of the creditors need to agree but all creditors will be subject to the terms and conditions – even if some creditors rejected th
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| Are IVAs Approved By The Government?
Yes – they were introduced as part of the Insolvency Act (1986) and are a legitimate statutory tool to help solve your debt problems. At present, the Government is looking into ways to make the IVA process easier and promote as a more suita
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| I Am Confused By The Terminology – What Does It All Mean?
Debtor If you are in debt with a credit card company, bank or Loan Company (commonly known as ‘loan sharks’ then the debtor is you! Creditor This is company that you owe money to. These companies
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| Can I Still Apply For A Mortgage If I Am In An IVA?
Yes, you can take out a fresh mortgage with this option.
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