Frequently Asked Questions
We specialise in the provision of Individual Voluntary Arrangements (IVA’s) for individuals based in England, Wales or Northern Ireland.
What is an IVA?
An IVA, or an Individual Voluntary Arrangement is an agreement that is made between you and those you owe money to (your creditors) that determines how much you will repay each month and over what period of time (usually five years).
What is debt consolidation?
Debt Consolidation, quite simply, is a way of refinancing your existing debts, so that you only make one payment per month, therefore making repayments easier and relieving some of your financial stress.
Will an IVA affect my job?
More often than not, an IVA will not affect your job, or your ability to get another job in the future as it is highly uncommon for employers to carry out credit checks on potential employees. Also, an IVA could be looked on positively, as it is considered a sensible option and a great way to avoid possible bankruptcy.
What debt options do you have?
At the moment, there are more debt relief options available than ever – some more severe than others. The debt relief option suitable for yourself will depend entirely on your circumstances. For debts totaling less than £20,000, things such as Debt Relief Orders and Debt Management plans are a great way of clawing yourself out of financial difficulty.
What Debts Go Towards an IVA?
You may be surprised to hear that an IVA will actually cover most forms of debt you can think of – as well as some you may not have even heard of. The most common form of debt is bank loans, which is of course covered by an IVA. Some other debt types that go towards an IVA are payday loans, overdrafts, store cards, credit cards, catalogue accounts and property shortfalls. In addition to these, you may find that an IVA also covers vehicle shortfalls, furniture credit, electrical goods credit and even personal guarantees.
Will I Lose My House?
If you find yourself taking out an IVA, you will be glad to hear that there are currently no laws in place that will force you to sell your home. However, you may be asked to release some of the equity within it, in order to repay your debts. This can be achieved by remortgaging your home during the five-year period that an IVA is in place.
What is a CCJ?
A CCJ, or a County Court Judgement in full, is a court order that may be registered against you if you have failed to pay back money that you owe. CCJ’s are popular with creditors, as it is seen as an easy way for them to retrieve their money. If a CCJ is issued against you, you will be given an admission form to fill in, with several options. For example, you can choose to pay your debts in full, ask to pay in instalments or even ask to pay at a later date. In addition to this, you can also dispute the amount owed, or dispute the claim entirely if you feel you don’t owe anything.
How Long Does Bankruptcy Last?
Bankruptcy is commonly considered one of the most severe ways of getting yourself out of financial struggle, simply due to the ramifications that come along with it. However, it’s worth considering that like most forms of debt help, bankruptcy isn’t permanent. In fact, bankruptcy status usually lasts for just a year and can be used as a way of clearing all your debts and making a fresh financial start.