Frequently Asked Questions
We specialise in the provision of Individual Voluntary Arrangements (IVA’s) for individuals based in England, Wales or Northern Ireland.
How does an IVA work?
Our experienced advisors will look at your financial situation with you and work out, based on your monthly income, what you can realistically afford to pay towards an IVA.
A proposal will then be prepared for your lenders. This will include:
- Details of your finances
- The terms of the proposed IVA
- Reasons why they should agree to your IVA
Your proposal will then go through the following process:
- Your lenders will vote on whether to accept the proposal (in most cases they will)
- Once accepted, the IVA will be legally binding for you and your creditors
- You’ll start making your months payments for the agreed term
- After your last payment, any outstanding debt, including interest and charges, will be written.
Please note, if your IVA fails, you would be at risk of bankruptcy.
Will an IVA affect my job?
For most people, an IVA will not affect their job.
Keep in mind though, that some employers can have rules against employing people in certain positions who are on an IVA, or have been in the past.
Your job can be affected:
- if you're responsible for money, e.g. an accountant, or
- if you advise people about their money e.g. a mortgage advisor.
Our advisors will be able to tell you if your job is likely to be impacted.
Will lenders stop chasing me?
Your lenders will have to stop contacting you and chasing you for payments if your IVA is accepted.
Your lenders won't be able to take any further legal action against you.
Will people know I'm on an IVA?
An IVA is a private agreement between you and your lender. You don't have to tell anyone that you're on an IVA, if you don't wish to.
Your details will be added to the Insolvency Register until three months after your IVA ends. This register is publicly available, however someone would have to search for your details to find them.
Will my home be affected?
You don't have to worry about your home. It will be safe on an IVA.
You might be asked to release equity by remortgaging in the last year. If you're unable to, your IVA could continue for up to another 12 months.
If you're a tenant, your new monthly payment will leave enough money to cover your rent.
What debts can go into an IVA?
You can pay off any of your unsecured debts with an IVA.
- Personal loans
- Credit and store cards
- Catalogue debt
- Council Tax arrears
- Benefit arrears
You can't pay off any secured debts, like your mortgage, through an IVA so you will need to continue to pay these.
Your monthly IVA payments will take these into account though, to make sure you have money available to pay them.