What is an IVA?
Professional debt advice
An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement between you and your unsecured creditors.
If you’re struggling with your unsecured debt, unable to manage both your household bills and your credit commitments, an IVA could be the debt relief solution for you.
An IVA allows you to set up an affordable repayment plan with the creditors included in the arrangement over a set period of time (typically between 5 - 6 years).
During the term of the IVA your interest and charges are frozen, and your unsecured creditors are unable to take any further legal action against you or chase you for payments. If you own your own property, you won’t be asked to sell you house.
Whilst in the IVA, your circumstances will be reviewed on an Annual basis to ensure that the repayment plan is still affordable using nationally recognised spending guidelines. Whilst in the IVA, your circumstances will be reviewed on an Annual basis to ensure that the repayment plan is still affordable using nationally recognised spending guidelines. The annual review is also to determine if an increase/decrease in contributions can be made.
Upon the successful completion of the IVA, any remaining debt and the accrued interest and charges are written off.
As with any formal debt solution (Bankruptcy or Debt Relief Order), your credit rating will be affected for six years from the start date and your name will be added to a Public Register (the Individual Insolvency Register). If you come into any money during the term of the IVA e.g. an inheritance, lottery win, pay rise or bonus, you may have to pay a proportion of the funds received towards your debt.
If you own your own property, you may be required to free up any equity in your property by way of a remortgage to pay towards your debts; - remortgaging whilst on an IVA is likely to be on less favorable terms than your current mortgage. However, if you can’t remortgage, the IVA could be extended by up to 12 months.
It is important that you keep up with your repayment pan. If your IVA fails, you could be at risk of Bankruptcy.
What debts can be managed with an IVA?
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Most UK debts can be consolidated using an IVA arrangement, including:
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Council tax arrears
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Water arrears
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Gas and electric arrears
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Catalogue debts
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Payday loans
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Personal loans
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Credit card arrears
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Self Assessent arrears
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Overpayments
And much more. Arrange a call back today and let our friendly team know what you need help with.
How do I know if I'm eligible for an IVA?
To be eligible for an IVA you must be over 18 years old living in England or Wales. You must have over £6,000 of unsecure debt to over two creditors and must be able to afford a minimum of £100 a month in repayments.
If you're not sure if you meet the criteria, our team can talk you through the process in more detail and offer advice on if this is the right solution for you.
Why choose an IVA with Simplify Debt?
Free Initial Advice
We want you to be safe in the knowledge that an IVA is the best option for you. Our team will make sure you have the right information to make an informed decision on your financial future with no commitment or obligation required.
Friendly Team
At Simplify Debt we understand how tough it can be when debts get out of control. We're here to help you organise your finances better and start you on the road to being debt-free.
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Fill in our contact form or send us your contact information directly by emailing us today. We will arrange a telephone consultation on a date and time that suits you.