Thinking about an IVA? The first step is to get advice on all your options, so you can check whether an IVA is right for you or whether something else would suit you better.
May not be suitable in all circumstances. Fees apply, read more. Your credit rating may be affected, read more.
An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.
If you’re thinking about applying for an IVA, you’re probably struggling with debt and want a clear way forward.
You don’t need to figure this out alone, and you don’t need to commit to anything to find out where you stand. An adviser will usually spend 20 to 30 minutes going through your situation.
We’ll talk through your income, outgoings and what you owe, so an adviser can build a picture of what you can realistically afford, then explain whether an IVA looks suitable or whether an alternative such as a DRO, a debt management plan or bankruptcy would suit you better.
As a rough guide only (these are not qualifying criteria), an IVA is usually considered if you:
If an IVA looks right, a licensed insolvency practitioner will draft a proposal and present it to your creditors at a creditors’ meeting, showing what you can afford to repay.
See which debt solutions you could qualify for. Checking your options won’t affect your credit score.
For an IVA to be approved, at least 75% (by debt value) of the creditors who vote must accept the proposal. Once that threshold is met, all creditors are bound by it — even those who objected. You then make a single monthly payment, which your insolvency practitioner distributes to your creditors after fees. Your income and spending are reviewed each year and your payment can change.
At the end of the five or six years, any remaining balance on the qualifying debts included in the IVA is written off. Before you start, you’ll be told exactly how long it will last, what you’ll pay each month, and the fees involved. For the after-effects, see an IVA and your credit rating.
There are no upfront fees. An IVA has two main fees: the nominee’s fee, for preparing your proposal and putting it to your creditors, and the supervisor’s fee, for running the IVA until it ends. Both are taken from your monthly payments once the IVA is approved, rather than charged on top — which means less of what you pay reaches your creditors.
Our total fees are currently £3,650, although creditors may change this when they vote on your proposal. Our fees are set out in writing in your proposal before you agree to anything.
Not sure an IVA is the one for you? Compare it with a Debt Management Plan, or read is an IVA better than bankruptcy.
See which debt solutions you could qualify for.
