Do you qualify for an IVA?

Can you say 'Yes' to these 3 questions?

My debts total at least £15,000.

I owe money to at least 3 creditors.

I am currently employed or self-employed.

If so, contact us as we may be able to help. We could help you write off up to 75% of your debt.

We offer free debt advice, without obligation. [learn more]

Find out more about who can benefit from an IVA (Individual Voluntary Arrangements)

We could help you write off up to 75% of your debt.

These are just some of the lenders we have successfuly negotiated with in order to reduce debt for our clients...

The IVA Approval Process

If you owe more than £15,000 to 3 or more creditors an IVA may provide a solution to your financial difficulties. By acting as intermediaries and negotiating with your creditors we may be able to reduce the total amount you owe so that your monthly repayments are more affordable and an end to your debt is in sight. For more information on how IVAs work click here.

If you have researched the alternatives, weighed up the advantages and potential disadvantages and feel that an IVA is a potentially suitable solution for your needs then we can help.

1	Firstly you will need to discuss your personal circumstances with a debt advisor and IVA specialist. They will help to establish how much you can reasonably afford to offer your creditors and advise you as to whether an IVA is likely to be accepted based on this figure. If it is agreed that an IVA is a viable solution to your financial difficulties, your information will be passed onto an Insolvency Practitioner who will present your IVA offer to your creditors.
2	Your Insolvency Practitioner will draw up a draft IVA proposal detailing your offer. You will need to agree and sign this if you wish to proceed. Your creditors will then be contacted, notified that it is your intention to propose an IVA and asked to refrain from contacting you and to suspend all current legal proceedings in place to recover your current debt whilst the IVA proposal is being prepared and reqested.
3	A copy of your offer will be forwarded to each of your creditors, after which a meeting will be held to discuss your proposal. At the meeting, as long as creditors representing 75% of the total amount owed agree to the proposal, it becomes legally binding for all creditors.
4	After the IVA has been accepted, the court and all of your creditors will be notified as to the details of your agreement. Your Insolvency Practitioner will usually be appointed as the supervisor of your IVA ; it will be his/her role to monitor your repayments and ensure you fulfil any other creditor requirements.
5	You will usually be required to make repayments into the IVA for a fixed period of time, typically 5 years. It is important to meet all repayments otherwise the IVA may be deemed invalid. If your personal circumstances change and it becomes difficult to do this you should notify your IVA supervisor as soon as possible.
6	If you meet all repayments as requested, at the end of the IVA term any remaining amount owed to creditors will be written off and you will be free from your debts.

Become Debt Free after just 60 months!

An Introduction to IVAs (Individual Voluntary Arrangements)

An IVA, or individual voluntary arrangement, is a legally binding agreement made between you and your creditors (the people you owe money to). IVA's typically involve making affordable, monthly payments towards the sum of your unsecured debts over a fixed term. IVAs are overseen by an Insolvency Practitioner who is responsible for collecting your repayments and distributing them to your creditors as appropriate.

During the term of the IVA, as long as you meet the requested payments you will not be contacted by your creditors or their associates and no further interest or fees will be accumulated on your loans. Additionally, at the end of the IVA term, if the funds you have contributed are not sufficient to repay your creditors in full, any remaining amount will be written off and you will be debt free.

Learn more about IVAs, and their advantages and disadvantages.

Latest IVA News

IVAs become the debt managment solution of choice - 3rd May 2007

Last year saw insolvencies hit an all time high, with over 107,000 UK individuals undertaking debt management solutions. Representing a 59% increase on the previous year, this large increase can be partly attributed to a huge rise in the number of IVAs agreed.

Despite the fact that IVAs have been an option for those struggling with unmanageable debt since 1986, it is only in recent years that people have begun to see them as a viable option. With an increase in the level of personal debt, coupled with a decrease in the stigma attached to debt management, more and more people are looking to IVAs as a way out of debt.

IVAs often provide a mutually beneficial agreement for both creditors and those in debt. This is because settlement amounts are often more than creditors would receive should the indebted individual be made bankrupt and, for those who choose this option, they offer a realistic solution to debt and less stringent credit penalties.

However, the recent increase in IVAs has led some financial institutions to tighten restrictions on those applying for IVA's in an attempt to recover costs. Where many creditors accept a reduced repayment amount of 25p in every £1 owed, some are now demanding greater amounts before an IVA is agreed.

This move was partly prompted by a worry that some are beginning to see IVAs as a easy way to write off excessive debt rather than a means to help those experiencing financial difficulty. With personal debt spiralling into stratospheric amounts and high street banks writing off £1.4 billion thorough IVAs last year, you can understand their concern.

While moves such as this may make the IVA market slow down a little, it is unlikely that IVAs will fall out of favour anytime soon, simply because they provide a realistic means for indebted individuals to pay back at least part of what they owe.