IVA INFORMATION

COULD YOU BENEFIT FROM AN IVA?
CALL 01823 216156EMAIL AN ADVISER
GB Insolvency are a family run Insolvency Practice with over 15 years experience in Personal Insolvency and debt advice. We offer clear, ethical and expert advice to help you and your financial situation. Read on to find out if an IVA is right for you or download our IVA Guide.

Contact us

Please tick to confirm you agree to our Privacy Policy

What is an IVA?

An Individual Voluntary Arrangement (IVA) is a procedure introduced by the Government in 1986 as an alternative to Bankruptcy. It helps people across the UK move towards a debt-free future.

An IVA typically lasts five years and clients pay what is affordable on a monthly basis. After this any remaining debt is paid off.

What if I'm self-employed?

An IVA is an ideal solution for the self-employed. In fact, IVA’s were originally introduced to help the self-employed avoid bankruptcy and continue trading.

An IVA is completely different to Bankruptcy and is geared towards allowing you to continue trading whilst taking steps towards a debt free future.

w

What if I own my home?

An IVA is a popular choice for homeowners. This is because unlike bankruptcy, you will not be forced to sell your family home to complete your IVA.

There are agreed rules regarding your property in an IVA which may result in your IVA being extended by 12 months, rather than being forced to sell your home.

What is an IVA?

An Individual Voluntary Arrangement (IVA) is a procedure introduced by the Government in 1986 as an alternative to Bankruptcy. It helps people across the UK move towards a debt-free future.

An IVA typically lasts five years and clients pay what is affordable on a monthly basis. After this any remaining debt is paid off.

What if I'm self-employed?

An IVA is an ideal solution for the self-employed. In fact, IVA’s were originally introduced to help the self-employed avoid bankruptcy and continue trading.

An IVA is completely different to Bankruptcy and is geared towards allowing you to continue trading whilst taking steps towards a debt free future.

w

What if I own my home?

An IVA is a popular choice for homeowners. This is because unlike bankruptcy, you will not be forced to sell your family home to complete your IVA.

There are agreed rules regarding your property in an IVA which may result in your IVA being extended by 12 months, rather than being forced to sell your home.

EVERYTHING YOU NEED TO KNOW ABOUT IVA’s

blank
How does an IVA work?

With the help of the Insolvency Practitioner you agree to pay off a percentage of your debt over a given period of time, by means of affordable repayments (normally over 60 months).

The Insolvency Practitioner works out what you can afford to pay each month by analysing your income, expenses and your debts. They are responsible for setting up and negotiating the IVA payments with your creditors.

An IVA is a completely legally binding process governed by The Insolvency Act 1986. When your creditors agree to the IVA, both you and they are bound by the terms of the arrangement.

How do I qualify for an IVA?

You must have a minimum of £5,000 worth of eligible debt – by this we mean debt that can be included in an IVA. You must owe money to at least two creditors and have an available monthly disposable income of at least £70.

A number of debts can be included in an IVA with the exceptions of student loans, court fines, child maintenance arrears and secured debts, although other exclusions may apply.

Other organisations may have slightly different qualifying thresholds to ours (such as higher or lower requirements on disposable income). If you are in any doubt about this we would highly recommend getting in touch or using our call back service to discuss this further. IVAs are not available in Scotland.

Is an IVA right for me?

It is important that you consider the features and benefits of an IVA. To understand if it’s the right option for you, here is some key information to help:

Once your IVA has been accepted, you could benefit from:

  • Lower and consistent monthly repayments to your creditors based on what you can afford.
  • Debt forgiveness – Once you have made the agreed contributions any remaining money owed is written off on completion of the IVA.
  • Full legal protection from the creditors included in your IVA – they cannot pursue you for their debt or take legal action.
  • All interest and charges are frozen when your IVA is accepted.
  • A fixed agreement usually lasting 5 years, after which any remaining unsecured debts will be written off.
  • An IVA can help safeguard your property and ensure future affordability even after the IVA.
  • Stress free and peace of mind as the IVA will stop contact from your creditors.
  • Enables you to continue to trade if you are self-employed or have a trading business.
  • An IVA can catch unknown debts such as unpaid tax or overpaid tax credits.
  • An IVA allows you to regain control of your debts and work towards debt freedom

Things to consider

  • If you don’t stick to the agreed terms of your arrangement and you don’t speak to your Insolvency Practitioner or their team your arrangement may fail.
  • If your circumstances change, and your insolvency practitioner can’t get creditors to accept amended terms, the IVA is likely to fail. You will still owe your creditors the full amount of what you owed them at the start, less whatever has been paid to them under your IVA.
  • If your arrangement fails your creditors could again take action against you and interest may resume on your debts.
  • There are industry guidelines for your expenditure we have to adhere to. If your expenses are higher than the recommended amounts this could make obtaining approval from creditors more difficult.
  • If you have assets then you may be asked to make these available to your IVA e.g. savings plans.
  • If you are a homeowner you may be asked to re-mortgage your property in the 5th year of your IVA, to release any equity to creditors. There are many situations where a re-mortgage is not required which we can explain to you and if a re-mortgage is not available an IVA can be extended for 12 months which is generally what happens in most cases.
  • An IVA will appear on your credit file for up to 6 years from the date it commences. During this time it may be difficult for you to obtain credit.
  • Creditors can reject an IVA but there are usually specific reasons for this and we can negotiate with creditors or even re-propose the IVA if required, although over 97% of our proposals are accepted.
  • An IVA will be recorded and entered on to a public register but someone would need to be specifically looking for you on it to find you.
The IVA process

STEP 1

When you contact us we will have a chat about your current situation, including an assessment of your income, outgoings and your debts. We will let you know if an IVA is the right option for addressing your debts.

STEP 2

If you decide that you want to proceed with an IVA, our Insolvency Practitioner will begin working on your IVA proposal. We will only put forward a proposal if we think an IVA is the best solution for you and if the majority of your creditors will accept it.

Your IVA proposal will state your proposed plan of repayment to your creditors. The repayment structure of an IVA is normally 60 monthly payments, but you could do a lump sum IVA depending on your circumstances.

STEP 3

Once all has been agreed with you, a copy of your IVA proposal is sent to your creditors. We then gather their votes to accept or reject the proposal. If your IVA is approved, your payments can begin with your confirmation. It’s as simple as that.

We will remain with you at every stage throughout your IVA should you need to contact us. All communication with your creditors can be done through us.

Points to consider

You can be assured that anything we discuss is in total confidence and is with no obligation.

If you are struggling with debt repayments then don’t wait. Do something about it as soon as possible and get in touch with us at GB Insolvency.

IVA Fees

  1. It is free to set up an IVA with GB Insolvency. We do not charge any upfront fees for drafting and submitting your IVA Proposal. We only put an IVA case forward if we believe it will be a successful one for both you and your creditors. If however, in the event that your IVA proposal is unsuccessful, then you will not be charged a penny.
  2. The fees for an IVA are all set by the creditors (no matter which provider you use), so if your IVA application is successful, the only thing to worry about is whether you have chosen the right Insolvency Practitioner.
  3. All fees are taken out of your affordable monthly payment or from your agreed lump sum payment, so you will never be asked for additional fees or receive a bill from us.
  4. Our in-house, highly regulated Insolvency Practitioner gives us a wealth of experience and knowledge so we have probably seen all possible circumstances.

NOTE: We will only put forward an IVA proposal if we believe it will be accepted by your creditors. We do not charge upfront fees for setting up your IVA proposal, so in the unlikely event it is not accepted by creditors, you won’t have to pay a single thing. Be wary of companies charging fees for your IVA proposal. You could end up paying £100’s for a proposal that is not accepted.

Call us now on 0800 368 8586 or read our IVA Guide for further information.

My debts were affecting my health and I was scared to answer the door. Since dealing with GB Insolvency I took their IVA advice and feel I can live my life again. They have taken the stress and worry away!

Mark, Manchester

GB Insolvency gave me a huge amount of support. They helped me find the right finance solution for my family’s needs and all was done very efficiently. The IVA advice they gave was clear and helped us understand everything.

Jane, Leeds

OTHER DEBT OPTIONS

More information? Call us now

You can also download our IVA Guide which provides much more detailed information on your options

CALL 01823 216156EMAIL AN ADVISER

Bankruptcy

Bankruptcy is a court order that you can apply for if you are in serious debt. It is a legal declaration that confirms you are unable to repay your unsecured debts and any assets you have will be used to pay off your creditors. Any debts left unsettled will be written off completely. Whilst it is a possible solution to a serious debt problem, bankruptcy is not a decision to be taken lightly, as it can have a severe impact on your credit rating and future life.

Debt Management Plan

A Debt Management Plan (DMP) is an informal repayment agreement between you and your creditors. It allows you to reduce your debt repayments so that you can pay back your creditors at a pace that you can afford.  As it is an informal arrangement both you are and your creditors can cancel the arrangement at any time.

A DMP may show on your credit file depending on the creditors involved.

Debt Relief Order (DRO)

A debt relief order (DRO) is a way to have your debts written off if you have a relatively low level of debt.  There are strict criteria.  For example you must owe less than £20,000, own less than £1,000 worth of assets (and a car worth no more than £1,000).  In addition your surplus income must be less than £50 per month.  If your affordability improves within 12 months of entering the arrangement it can be revoked.

Debt Consolidation

Debt Consolidation usually means taking out a new loan or re-mortgage to clear all your other debts. People with debts can sometimes reduce their monthly outgoings by consolidating expensive credit cards, store cards and personal loans into one new deal. Consolidating debts into one new loan could help reduce your monthly outgoings to a level you can afford.

Bankruptcy

Bankruptcy is a court order that you can apply for if you are in serious debt. It is a legal declaration that confirms you are unable to repay your unsecured debts and any assets you have will be used to pay off your creditors. Any debts left unsettled will be written off completely. Whilst it is a possible solution to a serious debt problem, bankruptcy is not a decision to be taken lightly, as it can have a severe impact on your credit rating and future life.

Debt Consolidation

Debt Consolidation usually means taking out a new loan or re-mortgage to clear all your other debts. People with debts can sometimes reduce their monthly outgoings by consolidating expensive credit cards, store cards and personal loans into one new deal. Consolidating debts into one new loan could help reduce your monthly outgoings to a level you can afford.

Debt Management Plan

A Debt Management Plan (DMP) is an informal repayment agreement between you and your creditors. It allows you to reduce your debt repayments so that you can pay back your creditors at a pace that you can afford. As it is an informal arrangement both you are and your creditors can cancel the arrangement at any time.  A DMP may show on your credit file depending on the creditors involved.

Debt Relief Order (DRO)

A debt relief order (DRO) is a way to have your debts written off if you have a relatively low level of debt.  There are strict criteria.  For example you must owe less than £20,000, own less than £1,000 worth of assets (and a car worth no more than £1,000).  In addition your surplus income must be less than £50 per month.  If your affordability improves within 12 months of entering the arrangement it can be revoked.