IVA – Individual Voluntary Arrangement

There are many reasons why an IVA will work for you and it is already proven to be the ideal solution for thousands of people. If you’ve got unsecured debt over £15,000 and can afford a payment of £160 month over five years, get in touch with us here at Assured Money Solutions on 0800 612 2472 for further advice, alternatively you can simply fill in our contact us form which you will find on your right.

It’s important that when thinking about a debt management solution you understand everything, including the disadvantages too. With this in mind, we allow our clients to see our advantages and disadvantages, so that they can make an informed decision.

An IVA is just one of the options available to help you reduce monthly payments by up to 60% and possibly even write off some of your debt; the team at Assured Money Solutions are always on hand to offer you support.

IVA faq

In 1986 the government introduced the IVA (Individual Voluntary Arrangement) as part of the Insolvency Act, which acts as an ideal solution to protect you from legal action from your creditors. If you’ve got more than £15,001 debts that are unsecured to 3 or more creditors, an IVA may be right for you.

How Much of My Debts Will Be Written Off?

On average you can expect to have up to 60% of your debts written off, and in some cases we have seen as much as 70%.

Are There Different Types of IVA?

The team here at Assured Money Solutions will be able to discuss your situation and work out what the best solution is for your needs. There are a few different ways that an IVA can be set up and if you prefer, you can pay a lump sum to your creditors rather than monthly payments, or alternatively you could do both!

How Do I Arrange an IVA?

If you think an IVA is the right solution for you, your first step is to contact us and we will advise you on the next part of the process by considering your debts – if necessary we will appoint one of our Insolvency Practitioners who will work on your behalf throughout your IVA. We work with the expert team at Mark Tailby’s CBA Insolvency Practitioners, who will provide you with a first class service for your individual needs.

How Long Will It Take To Arrange An IVA?

The process of arranging an IVA begins with your insolvency practitioner setting up a meeting with all of your creditors; this is where they will vote as to whether they want to accept the terms of your IVA. In some cases creditors may decide not to attend and will instead send their vote to your insolvency practitioner, it is however important that they are all invited as no notice of the meeting could mean them chasing you for your debt separately. The length of time can vary between individual cases; however as a guide, it generally takes around six to eight weeks to be set up.

What Happens at the Creditors Meeting?

75% of your creditors must agree to the IVA for it to go ahead – this will depend on how much debt you owe to each creditor, and not the amount of creditors that vote as to how the vote will go. For instance, if you owe 75% of your debt to one, then their vote will rule as majority.

If My Proposal is Accepted, What Happens Next?

We want to ensure that throughout the term of your IVA, you are kept updated on any progress, and once it has been agreed your Insolvency Practitioner will ensure that everything is set up smoothly. You need to ensure that for your IVA to work successfully, you are able to upkeep your agreed payments, and if your financial situation changes at all, let us know – this way we can ensure that you have the right settlement in place for you.

My Creditors Are Taking Me To Court!

We understand that this can be an unnerving and anxious situation to be in, but rest assured as we are here to help. After the terms of your IVA have been agreed, your Insolvency Practitioner will begin to prepare a proposal, and an Interim Order can be applied for from the country court to stop your creditors taking you to court. This will eliminate any risk of enforcement action whilst it is in force; and you needn’t worry about waiting for weeks for this to come into play, as we are able to turn it around in just one week.

Are There Any Disadvantages to an IVA?

As with many debt management solutions, there are disadvantages, and you need to ensure you fully understand them all, as this will enable you to make an informed decision as to whether it is the best solution for you.

• Think about what you would do if your creditors wish to have equity in your property in year 4 or 5.
• Are you in a position to re-mortgage your property if necessary?
• Bankruptcy may be something that is more suited to you if you can’t keep up the payments.
• Your credit rating will be affected for up to 6 years, if you don’t follow the terms of your IVA.

We will be able to assist you with all areas of an IVA, and will advise you accordingly as to whether it is the best solution for your needs.

What Fees Do AMS Charge For an IVA?

To begin with, we will charge one upfront fee based on your monthly payments into your IVA x two payments, and this will be payable within 60 days. This is to cover costs of organising your case, ready for submission, with all of the information need; if your creditors vote against the terms of your IVA, this fee will be returned in full. You will also be required to pay fees for the Insolvency Practitioners and administration; however, these are ongoing and will be taken directly from your monthly payments.

You can rest assured that your payments won’t fluctuate throughout the terms of your IVA, as once it has been agreed, that will be the amount you pay throughout. For an IVA to work successfully as a debt management solution, you need to be completely honest with us about your circumstances as we can then assist you fully.

In June 2011 when this was published, our IVA partners were CVA Insolvency Practitioners, specifically Mark Tailby. If you want to find out more details about their service, click on the words “AMS IVA Partners”.

If you continue looking over our website, you will find much more information on the other services we offer including Debt Management and Bankruptcy.