Free Assessment 
Frequently asked IVA questions
Why haven’t I heard of IVAs?
IVA’s have existed since the 80’s but have only recently caught public and media attention because of the UK’s increasing debt problems. Over 40,000 people enter into IVAs each year and they are a highly regarded, ethically and morally sound way to deal with debt problems whilst avoiding bankruptcy.
Who can enter into an IVA?
Any insolvent individual who cannot repay their debts can apply for an IVA as long as their disposable income is over £170. However, if your income is unstable then it may not be appropriate for you to apply for an IVA.
What if my creditors aren’t all in favour of my IVA?
You only need 75% of your creditors (by value of debt owed) to vote yes for your IVA to go ahead. If 75% say yes, then the rest of your creditors will be included in your IVA, even if they voted no.
If your creditors don't vote to accept your IVA you will still have the option of bankruptcy or you can make an informal arrangement with your creditors.
Will my credit rating be affected?
Only in the short term. Once your IVA is complete your credit rating should repair fairly quickly.
How will an IVA affect my current credit?
Your current credit (e.g. credit cards and store cards) will be stopped and you will not be allowed any additional unsecured borrowings until your IVA is completed (this is typically within 5 years). It is possible to take or change a mortgage even while you are still within an IVA but you will need to make sure you get the advice of your Insolvency Practitioner for this.
Will my home be safe?
Yes, it will; when you are in an IVA you won’t have to sell your property. However, you may be required to release equity by taking out a remortgage in the last year.
Who pays the IVA fees?
The fees for an IVA are part of the amount that you pay back to your creditor over the agreed timescale. During the course of the IVA your contributions will go towards a creditor pot. The creditor pays the Insolvency Practitioner to manage the IVA on their behalf and the fees come from this pot. You won’t receive any extra bills or have to pay anything more than your agreed monthly payments.
How much will I have to pay into my IPA arrangement?
This figure will depend on your personal circumstances and will be agreed between you, the IP and your creditors. Normally the monthly payment will not be below £170.
Have any other questions?
If you have any other questions about how IVA's work or to find out if you qualify for one please complete the enquiry form to the right or call us on 0800 680 9026 or 0161 403 0132.
REMEMBER: NEVER pay upfront fees for IVA Advice
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